How to use the Fibonacci Retracement Calculator
- Choose the trend direction.
- Enter the swing high and swing low prices.
- Use the retracement levels for entries and the extensions for targets.
How the levels are calculated
Uptrend retracement = High − (High − Low) × ratio
Downtrend retracement = Low + (High − Low) × ratio
The ratios come from the Fibonacci sequence: 23.6%, 38.2%, 61.8% and 78.6%; 50% is not a Fibonacci ratio but is widely watched. Extensions (127.2%, 161.8%, 261.8%) project how far the next move might go.
Frequently asked questions
Which level is the most important?
Many traders watch the 61.8% “golden ratio” and the 38.2%–61.8% zone most closely, especially when it lines up with support/resistance or moving averages.