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Retracing DOWN from High
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Fibonacci Levels
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About

The Fibonacci Retracement Calculator is a critical instrument for technical analysts, designed to identify potential reversal points in financial markets. derived from the Fibonacci sequence, these ratios quantify the natural ebb and flow of market psychology. When an asset moves significantly (the impulse wave), it often retraces a predictable portion of that move before continuing in the original direction.

Accuracy in these calculations is paramount. A difference of a few pips in Forex or Satoshis in Crypto can determine the success of a limit order. This tool utilizes high-precision arithmetic to handle asset classes ranging from $0.000001 (Altcoins) to $400,000 (Berkshire Hathaway), ensuring the Golden Pocket (0.618 - 0.65) is mapped exactly.

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Formulas

The calculation depends on the market direction. The Range (ฮ”) is the absolute difference between the Swing High and Swing Low.

{
ฮ” = |High โˆ’ Low|

For an Uptrend (calculating support levels below current price):

{
Pricelevel = High โˆ’ (ฮ” ร— Ratio)

For a Downtrend (calculating resistance levels above current price):

{
Pricelevel = Low + (ฮ” ร— Ratio)

Where Ratio is a value like 0.618, 0.382, etc. Extensions use the same logic but project prices beyond the 100% range.

Reference Data

RatioName / SignificanceMarket PsychologyGeometric Origin
0.236Shallow RetracementIndicates strong trend momentum; price barely pulls back.14.236 (Inverse cube of ฯ†)
0.382First Major SupportStandard pullback level in healthy trends.12.618 (Inverse square of ฯ†)
0.500The 50% Level (Gann)Psychological halfway point (not a pure Fib ratio).12 (Bisection)
0.618The Golden Ratio (ฯ†)The strongest support/resistance. The "Golden Pocket".โˆš5 โˆ’ 1 รท 2
0.786Deep RetracementLast stand before trend invalidation.โˆš0.618
1.618Golden ExtensionPrimary target for trend continuation.ฯ†
2.618Strong ExtensionSecondary profit-taking target.ฯ†2

Frequently Asked Questions

This is a matter of trading style, but standard technical analysis dictates using the absolute High and Low of the wicks (shadows) to capture the full volatility range of the swing. Using bodies often results in premature entries.
This tool automatically detects the precision of your input. If you enter "0.00000123", all calculated levels will respect that decimal precision. You can also manually override the precision setting in the tool's options.
The Golden Pocket is the zone between the 0.618 and 0.65 Fibonacci levels. It is not a standard Fibonacci number but is statistically the most common reversal zone for major assets like Bitcoin and Gold.
If price closes decisively beyond the 100% level (the start of the move), the current trend structure is considered "invalidated" or broken. Traders then look to Extension levels (1.272, 1.618) in the opposite direction.