What are Fibonacci retracement levels?

Horizontal levels at 23.6%, 38.2%, 50%, 61.8% and 78.6% of a price swing, used to anticipate where a pullback may stall before the trend resumes.

How are the levels calculated?

For an uptrend: level = swing high − ratio × (high − low). For a downtrend the levels mirror up from the low: level = swing low + ratio × range.

Projections beyond the swing (127.2%, 161.8%, 261.8% of the range) used as profit targets once price breaks past the swing high or low.

Is 50% really a Fibonacci number?

No — it comes from Dow theory's half-retracement idea, but it is watched so widely that every fib tool includes it.

Which level is most important?

The 61.8% 'golden ratio' level gets the most attention, with 38.2% next. Deep 78.6% retracements that hold often precede strong reversals.

Which swing high and low should I pick?

Use the most recent clearly visible impulse on your trading timeframe — the swing an obvious chart reader would draw. Ambiguous swings produce ambiguous levels.

Forex

Fibonacci Retracement Calculator

Calculate Fibonacci retracement levels (23.6%–78.6%) and extensions (127.2%–261.8%) from a swing high and low, for uptrends and downtrends.

Fibonacci retracement levels are prices at fixed fractions (23.6%–78.6%) of a completed price swing, used to anticipate where a pullback may stall.

61.8% retracement

119.1

23.6% retracement: 138.2
38.2% retracement: 130.9
50% retracement: 125
78.6% retracement: 110.7
127.2% extension: 163.6
161.8% extension: 180.9
261.8% extension: 230.9

Retracements measure the pullback of the swing; extensions project targets beyond it.

Worked example

A stock rallies from a swing low of $100 to a swing high of $150 (a $50 range), then starts to pull back.

38.2% retracement: $150 − 0.382 × $50 = $130.90
50% retracement: $150 − 0.5 × $50 = $125.00
61.8% retracement: $150 − 0.618 × $50 = $119.10
161.8% extension: $100 + 1.618 × $50 = $180.90

The pullback zone traders watch most is $119.10–$130.90 (the 38.2%–61.8% band). If the uptrend resumes and clears $150, the 161.8% extension at $180.90 is a common target.

How this is calculated

Levels are fixed fractions of the swing range (high − low). For an uptrend (swing runs low → high):

retracement = high − ratio × range
extension = low + ratio × range

Retracement ratios are 23.6%, 38.2%, 50%, 61.8% and 78.6%; extensions use 127.2%, 161.8% and 261.8%. A downtrend mirrors both sets around the swing: retracements measure up from the low and extensions project below it.

The ratios derive from relationships in the Fibonacci sequence (0.618 is the golden ratio's inverse); 50% is included by convention rather than mathematics.

When to use this calculator

Use this after a clear impulse move when you are waiting for the pullback: the 38.2%–61.8% band is the classic zone for continuation entries, and the exact prices are worth having before the market gets there.

It doubles as a target tool. Once price breaks past the swing extreme, the 127.2% and 161.8% extensions are the standard projected targets for the next leg.

It works best as confluence — a 61.8% retracement that lands on a prior support level or a daily pivot is a far stronger zone than either alone. Use it to plan levels in advance, not to justify entries after the fact.

Common mistakes

Picking minor swings — retracement levels are only as meaningful as the swing high and low they are drawn from.
Reversing the direction, which flips every level to the wrong side of the range.
Trading a level blind: fib zones work best as confluence with structure, moving averages or pivots, not as standalone signals.

Frequently asked questions

What are Fibonacci retracement levels?: Horizontal levels at 23.6%, 38.2%, 50%, 61.8% and 78.6% of a price swing, used to anticipate where a pullback may stall before the trend resumes.
How are the levels calculated?: For an uptrend: level = swing high − ratio × (high − low). For a downtrend the levels mirror up from the low: level = swing low + ratio × range.
What are extensions?: Projections beyond the swing (127.2%, 161.8%, 261.8% of the range) used as profit targets once price breaks past the swing high or low.
Is 50% really a Fibonacci number?: No — it comes from Dow theory's half-retracement idea, but it is watched so widely that every fib tool includes it.
Which level is most important?: The 61.8% 'golden ratio' level gets the most attention, with 38.2% next. Deep 78.6% retracements that hold often precede strong reversals.
Which swing high and low should I pick?: Use the most recent clearly visible impulse on your trading timeframe — the swing an obvious chart reader would draw. Ambiguous swings produce ambiguous levels.