Fibonacci Retracement

Fibonacci retracement draws horizontal levels between a swing high and a swing low at key percentages, 23.6%, 38.2%, 50%, 61.8% and 78.6%, to mark where a pullback might pause. Calculate exact levels with our Fibonacci calculator.

Neutral explainer. This page explains how the tool is calculated and read. Indicators are derived from past prices and don’t predict the future on their own.

The levels and where they come from

The ratios come from the Fibonacci sequence (0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89…), where each number is the sum of the two before it.

LevelOrigin
23.6%A number divided by the one three places higher (e.g. 21 ÷ 89)
38.2%A number divided by the one two places higher (e.g. 34 ÷ 89)
50%Not a Fibonacci ratio, but included because halfway pullbacks are widely watched
61.8%A number divided by the next one (e.g. 55 ÷ 89), the “golden ratio” inverse
78.6%The square root of 0.618

How to draw it

  1. Find a clear swing: a significant low and high.
  2. In an uptrend, draw from the swing low to the swing high; levels appear below the high as pullback zones.
  3. In a downtrend, draw from the swing high to the swing low; levels appear above the low.
Uptrend level = High − (High − Low) × Ratio

Example: swing from $100 to $120. The 38.2% retracement is 120 − 20 × 0.382 = $112.36; 50% is $110; 61.8% is $107.64.

Extensions

Fibonacci extensions project beyond the swing, commonly at 127.2%, 161.8% and 261.8%, and are used to mark possible targets. The calculator gives both retracements and extensions.

Keep in mind

Results depend heavily on which swing you choose, and with five levels close together, price will often react near one of them by chance. Many traders look for a Fibonacci level that lines up with other support or resistance.

On TradingView

Use the Fib Retracement tool (Alt + F): click the first swing point, then the second. You can change, add or hide levels in its settings.

Educational explanation only. ChartWatch is independent and doesn’t give trading or investment advice. Trading carries a risk of loss.

FAQ

What are the Fibonacci retracement levels?
The common levels are 23.6%, 38.2%, 50%, 61.8% and 78.6% of a price swing.
Is 50% a Fibonacci level?
Not mathematically. It's included because halfway pullbacks are widely watched.
How do you draw Fibonacci retracement in an uptrend?
Draw from the swing low to the swing high. The levels below the high show possible pullback zones.
What is the golden ratio in trading?
1.618 and its inverse 0.618, which appear as the 61.8% retracement and 161.8% extension levels.

More free TradingView tools

Fibonacci CalculatorFib retracement and extension levels from a swing high and low. Support and ResistanceHow price levels act as floors and ceilings. Pivot Point CalculatorClassic, Fibonacci, Woodie and Camarilla pivot levels. Chart PatternsHead and shoulders, double tops, flags and wedges explained.
TradingView — the fastest way to follow markets
Watchlist BuilderAll GuidesWatchlist GuideTradingView PlansIndicatorsShortcutsBar ReplayAlert BuilderPine ColorsWatchlist CleanerCalculatorsWorld Market HoursForex HoursStock Market HoursMarket HolidaysFed Meeting DatesCPI & NFP DatesPosition Size CalculatorCandlestick PatternsChart PatternsChart ColorsSymbol FormatAboutPrivacyTermsContact

ChartWatch is an independent tool and is not affiliated with, endorsed by, or officially connected to TradingView, Inc. “TradingView” is a trademark of its respective owner. Exchange, broker and platform names are trademarks of their respective owners.