Fibonacci Retracement Calculator
Print| 23.6% Retracement | $0.00 |
| 38.2% Retracement | $0.00 |
| 61.8% Golden Ratio | $0.00 |
| 78.6% Retracement | $0.00 |
The Fibonacci Retracement Calculator helps traders determine prospective support and resistance levels for stocks, forex, cryptocurrencies, and futures. Based on the natural mathematical proportions of the Fibonacci sequence, these retracement levels pinpoint strategic entry, target, and stop-loss positions during market pullbacks.
The Fibonacci Retracement Formula
Fibonacci retracement levels are derived by identifying a distinct swing high and swing low on a price chart and applying key mathematical ratios (23.6%, 38.2%, 50.0%, 61.8%, and 78.6%):
Uptrend Retracement Level = Swing High - ( (Swing High - Swing Low) × Ratio )
Downtrend Retracement Level = Swing Low + ( (Swing High - Swing Low) × Ratio )
Where key retracement ratios are defined as:
- 23.6% (0.236): Shallow pullback ratio representing mild profit-taking.
- 38.2% (0.382): Standard initial pullback target during strong trends.
- 50.0% (0.500): Dow Theory midpoint retracement (psychological level).
- 61.8% (0.618): The Golden Ratio level; the primary technical reversal zone.
- 78.6% (0.786): Deep retracement level prior to full trend invalidation.
Standard Fibonacci Technical Levels
Reference key Fibonacci percentages and their typical roles in technical analysis:
| Fibonacci Ratio | Retracement Type | Trader Application & Significance |
|---|---|---|
| 23.6% | Shallow Pullback | Common in strong momentum trends; indicates high buyer/seller strength. |
| 38.2% | Moderate Pullback | Primary technical entry target during steady trend continuations. |
| 50.0% | Midpoint (Psychological) | Non-Fibonacci ratio widely watched by institutional traders. |
| 61.8% | Golden Ratio Level | The most crucial support/resistance zone for high-probability reversals. |
| 78.6% | Deep Pullback | Last line of defense before a potential trend reversal occurs. |
Step-by-Step Fibonacci Retracement Calculation Example
Here is an example calculating Fibonacci support levels for a stock in an uptrend:
- Identify Price Swing: Swing Low = $100.00, Swing High = $150.00.
- Calculate Total Price Range:
$150.00 - $100.00 = $50.00. - Calculate 38.2% Retracement Level:
$150.00 - ($50.00 × 0.382) = $150.00 - $19.10 = $130.90. - Calculate 50.0% Retracement Level:
$150.00 - ($50.00 × 0.500) = $150.00 - $25.00 = $125.00. - Calculate 61.8% Golden Retracement Level:
$150.00 - ($50.00 × 0.618) = $150.00 - $30.90 = $119.10.
Frequently Asked Questions
What is the most important Fibonacci retracement level?
The 61.8% level, known as the Golden Ratio, is widely considered the most important technical support or resistance zone by market participants.
Is 50% a real Fibonacci number?
No, 50% is not mathematically derived from the Fibonacci sequence. However, technical traders include it because markets frequently retrace half of a major price move based on Dow Theory.
How do you draw Fibonacci retracements in an uptrend vs. downtrend?
In an uptrend, select the Swing Low first and drag the tool to the Swing High. In a downtrend, select the Swing High first and drag the tool to the Swing Low.
Can Fibonacci retracement levels be used across all timeframes?
Yes, Fibonacci retracements are scale-invariant and work effectively across daily, weekly, hourly, or intraday timeframes for stocks, forex, commodities, and crypto.