What Fibonacci retracements are
After a strong move, price often pulls back before it continues or reverses. Fibonacci retracement levels mark common pullback depths as fractions of the move: 23.6%, 38.2%, 50%, 61.8% and 78.6%. Traders watch these levels as areas where price may pause, bounce or fail.
The ratios come from the Fibonacci sequence. 61.8% is the best known (the golden ratio), and 38.2% and 23.6% come from further steps in the sequence. 50% is not a true Fibonacci ratio, but traders use it widely because many pullbacks stop at about half of the move.
Retracements and extensions
- Retracement levels sit inside the swing. In an uptrend they fall back from the high, in a downtrend they rise from the low.
- Extension levels (127.2%, 141.4%, 161.8%, 200%, 261.8%) sit beyond the swing and are often used as profit targets if the trend continues.
Using the calculator
Choose the trend direction, then enter the swing high and swing low from your chart. The ladder shows every level on the price line, with the key 38.2%, 50% and 61.8% levels highlighted, and the table lists the exact prices.
Treat the levels as zones to watch, not exact turning points. They work best when they line up with something else, such as a support or resistance zone, a trend line or a signal from an indicator.
The formulas
retracement in an uptrend = high − range × ratio
retracement in a downtrend = low + range × ratio
extension in an uptrend = low + range × ratio (ratio above 1)
extension in a downtrend = high − range × ratioRatios: 0.236, 0.382, 0.5, 0.618, 0.786 for retracements and 1.272, 1.414, 1.618, 2, 2.618 for extensions.
Worked examples
An uptrend from 100 to 200
The range is 100. Retracements fall back from the high: 23.6% at 176.4, 38.2% at 161.8, 50% at 150, 61.8% at 138.2 and 78.6% at 121.4. The 161.8% extension is at 261.8.
A downtrend from 200 to 100
Now the levels rise from the low. 38.2% is at 138.2, 50% at 150 and 61.8% at 161.8. The 161.8% extension projects below the low, at 38.2.
A forex swing
EUR/USD rises from 1.0700 to 1.1000, a range of 0.0300. The 61.8% retracement is at 1.1000 − 0.0185 = 1.0815, and the 38.2% level is at 1.0885.
Frequently asked questions
What are the Fibonacci retracement levels?
The common levels are 23.6%, 38.2%, 50%, 61.8% and 78.6% of the prior move. Some traders also use 88.6%.
How do I choose the swing high and low?
Use the most recent clear peak and trough of the move you want to measure, usually visible on your chart. Different choices give different levels, so be consistent.
Do Fibonacci levels actually work?
They are widely watched, which can make them self-fulfilling, but they do not predict turns reliably on their own. They are best used alongside other signals and with a stop-loss.
What is the difference between retracement and extension?
Retracements measure pullbacks inside the previous move. Extensions project beyond it and are often used for profit targets.
Is 50% a real Fibonacci level?
No, it is not derived from the sequence, but it is included because pullbacks to about half of a move are common.
Does it work for forex, stocks and crypto?
Yes. It is just arithmetic on two prices, so it works on any market and timeframe.
Fibonacci levels are a starting point.
Levels matter more when something else agrees. These indicators show zones, trend phase and momentum to confirm them.
Guides that explain it
Last updated October 2026. For education only. Not financial advice. Results depend on your inputs and cannot predict future performance.