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Fibonacci Calculator - A Powerful Technical Tool

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The Fibonacci calculator will show you the retracement and extension levels according to the popular Fibonacci theory used in forex trading.

 

Uptrend
*) The highest price point according to your observations
(example: 1.35000)
*) The lowest price point according to your observations
(example: 1.31000)
Retracements
0% (b)
23.6%
38.2%
50%
61.8%
76.4%
100% (a)
138.2%
Extensions
261.8%
200%
161.8%
138.2%
100%
61.8%
50%
38.2%
23.6%
Downtrend
*) The highest price point according to your observations
(example: 1.35000)
*) The lowest price point according to your observations
(example: 1.31000)
Retracements
138.2%
100% (a)
76.4%
61.8%
50%
38.2%
23.6%
0% (b)
Extensions
23.6%
38.2%
50%
61.8%
100%
138.2%
161.8%
200%
261.8%


Additional FAQ

Generally, traders use Fibonacci patterns to find the retracement of the current trend. Price movements in the forex market dynamically tend to "bounce" (retrace) from the Fibonacci lines, where these lines represent certain price levels that market participants always monitor before they trade. The stages are divided into the following series of numbers:

  1. Retracements: 0, 0.23, 0.38, 0.5, 0.61, 0.78
  2. Extensions: 1.27 and 1.61

If the trend is relatively strong because it is driven by certain high impact events, the price will dash through the retracement limit and is likely to experience a reversal after hitting the limit on the extension line.

Understanding Fibonacci

Continue Reading at 5 Powerful Strategies of Fibonacci Patterns

The retracement direction is from top to bottom in a downtrend and from bottom to top in an uptrend. Here are the results:

 

USD/CAD Daily chart with Fibonacci Retracement during an uptrend

How to Use Fibonacci in Financial Trading -3

 

EUR/USD Daily chart with Fibonacci Retracement during a downtrend

How to Use Fibonacci in Financial Trading -4

Continue Reading at Learn How to Use Fibonacci in Financial Trading

fibonacci retracement lines

You see, the price retraced on particular Fibonacci turning points, which is at 0.786. What it does mean is, when the price "weakened" to 78.6% of the previous trend, the market slung back up again.

Profit-taking is best as you enter a trade when the price is moving to certain Fibonacci "threshold". Try waiting for the price action to hit either 0.618 or 0.768 Fibonacci points and then close the position once it's spotted near resistance or support limit.

Continue Reading at 3 Best Methods to Improve Forex Profit Taking

AB = CD Fibonacci Pattern

At first glance, the AB = CD pattern looks like a zigzag pattern. But keep in mind that the lines are not just drawn without certain conditions.

  • The leg of the AB line is drawn from the lowest price (low) to the nearest high.
  • Next, for the retracement of the AB leg, the BC line should be at the 0.38 to 0.78 retracement level (ideally at 0.68) from the AB line.
  • The leg of the CD line is drawn from the low of the BC line towards the next high with a limit of 1.27 to 1.68 extension of the BC line.

Continue Reading at 5 Powerful Strategies of Fibonacci Patterns

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