Calculate Your Fibonacci Levels
Determine key levels of support and resistance for your trading strategy using the Fibonacci retracement calculator.
Results
Data Source and Methodology
All calculations are based on the standard Fibonacci retracement formulas. For more information, visit Investing.com. All calculations are strictly based on the formulas and data provided by this source.
The Formula Explained
The Fibonacci retracement levels are calculated using the formula:
Retracement Level = High - ((High - Low) × Fibonacci Level)
Glossary of Terms
- High Price: The highest price point in the chosen range.
- Low Price: The lowest price point in the chosen range.
- Fibonacci Level: Common levels include 23.6%, 38.2%, 50%, 61.8%, and 78.6%.
How It Works: A Step-by-Step Example
Suppose the high price of a stock is $150 and the low price is $100. To find the 38.2% retracement level:
Retracement Level = 150 - ((150 - 100) × 0.382) = 130.9
Frequently Asked Questions (FAQ)
What are Fibonacci retracement levels?
Fibonacci retracement levels are horizontal lines that indicate potential support and resistance levels where price may reverse direction.
How do I use Fibonacci levels in trading?
Traders use Fibonacci levels to identify potential reversal points in the market.
How accurate are Fibonacci retracement levels?
While not always precise, Fibonacci levels can provide useful insights into potential price movements.
Why are Fibonacci numbers used in trading?
Fibonacci numbers reflect a natural order and appear frequently in financial markets, providing insights into potential patterns.
Can Fibonacci retracement be used in all markets?
Yes, Fibonacci retracement levels can be applied to stocks, forex, commodities, and more.