How to use it
- Choose the direction of the move you are measuring. An uptrend runs from a swing low up to a swing high; a downtrend from a high down to a low.
- Enter the swing high and swing low prices.
- Optionally enter the current price to see how deep the pullback is and which level is closest.
The levels and what they mean
Retracements are where a pullback inside a trend might stop: 23.6%, 38.2%, 50%, 61.8% and 78.6%. The area between 50% and 65% is often called the golden zone because many traders wait for price to reach it before joining the trend.
Extensions are possible targets once the trend resumes: 127.2%, 141.4%, 161.8%, 200% and 261.8% of the original move.
In an uptrend the formulas are:
Retracement = High − (High − Low) × Ratio Extension = Low + (High − Low) × Ratio
In a downtrend they are mirrored.
Use Fibonacci with other evidence
Fibonacci levels work best when they line up with something else on the chart: a previous support or resistance zone, a moving average, a round number or an order block. A 61.8% retracement that also sits on old resistance turned support is far more interesting than one in empty space. Wait for price to react at the level, for example with a rejection candle, rather than buying blindly at a line.
The Alice scanner scores every crypto, forex, gold and index market from 0 to 100 on every timeframe, so you can spot these setups in seconds.
Open the free web appFrequently asked questions
Which swing high and low should I use?
Use the clear start and end of the most recent impulse move on the timeframe you trade. If you have to search for the swing points, the move is probably not clean enough to measure.
Is 50% a Fibonacci number?
No, 50% does not come from the Fibonacci sequence, but traders include it because markets often retrace about half of a move.
What is the golden pocket?
Some traders call the zone between 61.8% and 65% the golden pocket. It sits inside the wider 50% to 65% golden zone shown by this calculator.
Results are estimates for education and planning. Broker contract sizes, fees and margin rules differ, so always confirm on your platform before you trade.