Fibonacci Calculator
Instructions
Input
- Trend direction Select ‘Up’ or ‘Down’ to simulate an upward or downward trend.
Retracement/Projection Select “Retracement” to calculate the pullback points within a trend, or choose “Projection” to calculate the target points after a breakout.
- Low price In an upward trend, this is the lowest point of the price retracement. In a downward trend, this is the lowest point the price reaches.
- High price In an upward trend, this is the highest point the price reaches. In a downward trend, this is the highest point of the price rebound.
- Ending price (when “Projection” is selected) Enter the expected price target. This figure is typically the next high or low point you anticipate the price will reach, based on the current market trend.
Operating procedures
- Choose the trend direction. For example, when calculating Fibonacci retracement levels for EUR/USD, choose the "Up" trend direction.
- Select the "Drawdown" radio button to instruct the calculator to calculate the drawdown levels.
- Input the low price and high price, for example, the low price is 1.16653 and high price is 1.20552.
- Click the "Calculate" button.
Result
The Fibonacci calculator will calculate and display the retracement levels for the currency pair. These levels are created by taking the two extreme value points of the commodity’s price behavior (the lowest or highest fluctuation, or simply points A and B) and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, and 61.8%.
For example, in an uptrend, the lowest swing of EUR/USD (point A) is 1.16653, and the price rises to a high of 1.20552 (point B). After inputting this data, the calculator will display the Fibonacci retracement levels for each retracement position.
By default, the calculator will display the retracement levels. For predictive (extension) levels, traders should fill in the ‘End Price’ field, and the calculator will display multiple possible predictive levels (up to 161.8%).
What is Fibonacci levels?
Fibonacci retracement is a common method of analyzing commodity price behavior in financial markets. It is not a mysterious ratio or price pattern, but a popular analytical tool whose utility depends on its degree of self-realization.
Fibonacci levels mainly consist of two types: retracement and extension. Retracement levels are used when prices reach new highs (uptrend) or lows (downtrend), and traders believe the trend may temporarily end. Fibonacci retracement levels appear when the market begins to adjust or consolidate.
The main Fibonacci retracement levels include 0.236, 0.382, 0.500, 0.618, and 0.764.
On the other hand, Fibonacci extension levels are used to forecast the extent to which prices may surpass their original range and continue moving in the direction of the trend. Market prices may retract to a Fibonacci retracement level and then continue moving in the direction of the underlying trend, creating new highs or lows. Alternatively, after a consolidation period, it may continue moving in the direction of the primary trend without touching any Fibonacci retracement levels.
The key Fibonacci extension levels include 0.382, 0.618, 1.000, 1.382, and 1.618.
Just like the golden ratio doesn’t have any magical or universal rules, neither does the Fibonacci ratio. They are just interesting ratios discovered by mathematicians, which were later adopted by traders.
Due to the widespread use of Fibonacci ratios in global markets, including by some professional traders, many people buy and/or sell at these levels, making Fibonacci levels potentially very effective.