Fibonacci Calculator

What is Fibonacci retracement?

Fibonacci retracement is one of the most widely used tools in technical analysis. It is based on ratios derived from the Fibonacci sequence — most importantly 23.6%, 38.2%, 50%, 61.8%, and 78.6% — which appear throughout nature and, traders believe, in market behaviour too. After a strong move, price rarely travels in a straight line; it pulls back before continuing. Fibonacci levels estimate how far that pullback might go before the trend resumes, giving traders potential entry points in the direction of the trend.

How to use the levels

Identify a clear swing — a low to a high in an uptrend, or a high to a low in a downtrend — and enter those two prices above. The calculator plots the retracement levels between them. In an uptrend, traders watch for price to pull back to the 38.2%, 50%, or 61.8% level and then show signs of resuming upward — a common, high-probability entry zone. The 61.8% level (the "golden ratio") is the most closely watched of all. Extension levels (127.2%, 161.8%, 261.8%) project beyond the original move and are used as profit targets once a trend continues.

Why Fibonacci works (and its limits)

Part of Fibonacci's effectiveness is self-fulfilling: because so many traders place orders around the same levels, price genuinely tends to react there. But it is not magic. Levels are zones, not exact lines, and price can overshoot or ignore them entirely. That is why Fibonacci should never be used alone. It is most powerful as confluence — when a Fib level lines up with a moving average, a pivot point, or a signal from our gold dashboard. Explore that multi-factor thinking in our confluence simulator, and pair this tool with our pivot point calculator.