Which Fibonacci levels matter most?

Traders talk most about 38.2%, 50% and 61.8%, so the calculator highlights 50% and 61.8%. Popularity is the only reason they get attention; no level is more reliable by nature.

What is the difference between retracement and extension?

A retracement measures how much of a move is given back. An extension projects how far a move might go beyond its start or end.

Does it work on any timeframe?

The arithmetic is the same on any chart, from 5-minute candles to monthly ones. Only the swing points change.

Fibonacci Retracement Calculator with Extension Levels

Type the swing high and swing low of a move, and say whether it went up or down. Get the retracement and extension levels traders draw on charts.

How to use it

Find a clear move on a chart: the lowest point before a rise and the highest point after it (or the other way round for a fall).
Type the swing high and the swing low.
Choose Up if the move went from the low to the high, or Down if it went from the high to the low.

The formula

For an up move, a retracement level is high − (high − low) × ratio. For a down move, it is low + (high − low) × ratio. Extensions project beyond the move: for an up move, low + (high − low) × 1.272, 1.618, 2 and 2.618.

Worked example

Stock ABC rose from ₹100 to ₹200, a move of ₹100. The 23.6% retracement is 200 − 23.6 = ₹176.40; 38.2% is ₹161.80; 50% is ₹150; 61.8% is ₹138.20; 78.6% is ₹121.40. The 161.8% extension is 100 + 161.80 = ₹261.80.

Where the ratios come from

The ratios come from the Fibonacci sequence (1, 1, 2, 3, 5, 8, 13…): one number divided by the next tends to 0.618, and by the one after that to 0.382. 50% is not a Fibonacci ratio but is drawn by convention. 78.6% is the square root of 0.618.

A fair warning

There is no physical reason for prices to turn at these levels. With five or six levels close together, a price will almost always be near one of them, which makes the tool look better in hindsight than it is in real time. The levels also depend entirely on which high and low you choose. Treat them as a ruler on the chart, not a forecast.

Questions people ask

Which Fibonacci levels matter most?: Traders talk most about 38.2%, 50% and 61.8%, so the calculator highlights 50% and 61.8%. Popularity is the only reason they get attention; no level is more reliable by nature.
What is the difference between retracement and extension?: A retracement measures how much of a move is given back. An extension projects how far a move might go beyond its start or end.
Does it work on any timeframe?: The arithmetic is the same on any chart, from 5-minute candles to monthly ones. Only the swing points change.

Fibonacci retracement calculator