Fibonacci Retracement Calculator
Quickly compute fibonacci retracement with accurate formulas. See amortization schedules, growth projections, and side-by-side comparisons.
Calculator
Adjust values & calculateFibonacci Retracement Levels
Fibonacci Extensions (Targets)
Formula
Fibonacci retracement levels are calculated by taking the difference between the swing high and swing low (the range) and multiplying by each Fibonacci ratio. For an uptrend, levels are subtracted from the high to show support below. For a downtrend, levels are added to the low to show resistance above. The OTE zone spans the 61.8% to 78.6% retracement levels.
Last reviewed: December 2025
Worked Examples
Example 1: EUR/USD Bullish Retracement
Example 2: GBP/USD Bearish Retracement
Background & Theory
The Fibonacci Retracement Calculator applies the following established principles and formulas. Foreign exchange markets facilitate the conversion of one currency into another and serve as the largest and most liquid financial markets in the world, with daily turnover exceeding seven trillion US dollars. Exchange rates are quoted as currency pairs, expressing the price of one unit of a base currency in terms of a quote currency. For example, a EUR/USD rate of 1.0850 means one euro buys 1.0850 US dollars. The smallest standardized price movement in most pairs is the pip, typically the fourth decimal place, with a value of 0.0001 per unit for USD-denominated pairs. The bid price is the rate at which a dealer will buy the base currency, while the ask price is the rate at which it will sell. The spread between bid and ask represents the dealer's compensation and varies with liquidity and volatility. Leverage amplifies both gains and losses by allowing traders to control positions larger than their deposited margin. A 100:1 leverage ratio means a one-percent adverse move eliminates the entire margin, making position sizing and risk management critical. Two parity conditions from international economics anchor exchange rate theory. Purchasing Power Parity (PPP) holds that exchange rates should adjust over time so that identical goods trade at equivalent prices across countries: S = P_d / P_f, where S is the spot rate and P_d and P_f are domestic and foreign price levels. PPP performs well over long horizons but poorly in the short run due to trade barriers, non-tradable goods, and capital flows. Covered Interest Rate Parity (CIRP) is a near-arbitrage condition stating that forward exchange rate premiums or discounts exactly offset interest rate differentials between two currencies: F/S = (1 + r_d) / (1 + r_f). Deviations from CIRP create riskless arbitrage opportunities that traders rapidly eliminate. Uncovered Interest Rate Parity posits that high-yielding currencies should depreciate to offset their interest advantage, though empirical evidence is mixed and the carry trade — borrowing in low-rate currencies to invest in high-rate ones — has generated persistent returns.
History
The history behind the Fibonacci Retracement Calculator traces back through the following developments. For much of the nineteenth century and early twentieth century, the international monetary system operated under the classical gold standard, under which each participating currency was fixed to a defined weight of gold, making bilateral exchange rates effectively constant. The system provided price stability and facilitated global trade but constrained governments' ability to respond to economic downturns. World War One shattered the gold standard as nations suspended convertibility to finance wartime expenditures. The interwar period saw attempts to restore gold convertibility, most notably the British return to the gold standard in 1925 at the pre-war parity, a decision criticized by John Maynard Keynes as deflationary. The Great Depression forced widespread currency devaluations and the effective collapse of the international gold standard by the early 1930s. The Bretton Woods Conference of July 1944 established a new order in which member currencies were pegged to the US dollar, while the dollar alone was convertible into gold at 35 dollars per troy ounce. The International Monetary Fund and World Bank were created at the same conference to oversee the system. Bretton Woods delivered exchange rate stability during the postwar growth era but came under strain as US deficits and European dollar accumulation outpaced American gold reserves. On August 15, 1971, President Nixon announced the suspension of dollar-gold convertibility — the so-called Nixon Shock — effectively ending the Bretton Woods system. By 1973, major currencies had transitioned to floating exchange rates determined by market supply and demand, a regime that has persisted. On September 16, 1992, hedge fund manager George Soros shorted the British pound against the European Exchange Rate Mechanism constraints, forcing the UK's withdrawal in what became known as Black Wednesday. Electronic trading platforms emerged in the 1990s and 2000s, replacing voice-brokered interbank markets and dramatically reducing transaction costs for institutional and retail participants alike.
Frequently Asked Questions
Formula
Retracement Level = High − (Range × Fib Ratio) [uptrend] | Low + (Range × Fib Ratio) [downtrend]
Fibonacci retracement levels are calculated by taking the difference between the swing high and swing low (the range) and multiplying by each Fibonacci ratio. For an uptrend, levels are subtracted from the high to show support below. For a downtrend, levels are added to the low to show resistance above. The OTE zone spans the 61.8% to 78.6% retracement levels.
Worked Examples
Example 1: EUR/USD Bullish Retracement
Problem: Swing Low: 1.0800, Swing High: 1.1000. Calculate retracement levels.
Solution: Range = 1.1000 - 1.0800 = 0.0200\n23.6% = 1.1000 - (0.0200 × 0.236) = 1.0953\n38.2% = 1.1000 - (0.0200 × 0.382) = 1.0924\n50% = 1.0900\n61.8% = 1.0876\n78.6% = 1.0843\nOTE Zone: 1.0876–1.0843
Result: OTE Zone: 1.0843–1.0876 | Golden Ratio: 1.0876
Example 2: GBP/USD Bearish Retracement
Problem: Swing High: 1.2700, Swing Low: 1.2500. Calculate levels for a bearish retracement.
Solution: Range = 0.0200\n38.2% = 1.2500 + (0.0200 × 0.382) = 1.2576\n50% = 1.2600\n61.8% = 1.2624\n78.6% = 1.2657\nLook for sell setups at 61.8-78.6% retracement
Result: OTE Zone: 1.2624–1.2657 | 50% midpoint: 1.2600
Frequently Asked Questions
What is Fibonacci retracement in trading?
Fibonacci retracement is a technical analysis tool that uses horizontal lines to indicate areas of support or resistance at key Fibonacci levels before price continues in the original direction. The levels are derived from the Fibonacci sequence and represent ratios: 23.6%, 38.2%, 50%, 61.8%, and 78.6%. Traders draw these levels between a significant swing high and swing low. The theory is that after a significant price move, price will often retrace to one of these levels before continuing. The 61.8% level (known as the golden ratio) is considered the most significant.
How do I draw Fibonacci retracement levels correctly?
For an uptrend: draw from the swing low to the swing high. The retracement levels will appear below the high, indicating potential support levels where price may bounce. For a downtrend: draw from the swing high to the swing low. The levels will appear above the low, indicating potential resistance levels. Always use significant swing points, not minor fluctuations. Higher timeframe Fibonacci levels are more significant than lower timeframe levels. The swing points should be clear and obvious — they should be the highest/lowest points of a defined move.
Which Fibonacci level is most important for trading?
The 61.8% level (golden ratio) is widely considered the most important Fibonacci level. When price retraces to this level, it indicates a strong pullback while still maintaining the overall trend structure. The 38.2% level represents a shallow retracement in strong trends. The 50% level, while not technically a Fibonacci ratio, is included because markets frequently retrace half of a move. In ICT methodology, the 61.8-78.6% zone (OTE) is considered optimal. Many traders look for confluence — where multiple Fibonacci levels from different swings align at the same price.
What are Fibonacci extensions and how are they different from retracements?
Fibonacci retracements identify potential reversal levels within a price move (between 0% and 100%), while Fibonacci extensions project levels beyond the original move (above 100%). Common extensions are 127.2%, 161.8%, 200%, and 261.8%. Extensions are used to set profit targets — for example, after entering at the 61.8% retracement, a trader might target the 127.2% or 161.8% extension. Extensions answer 'how far might price go beyond the original move?' while retracements answer 'how far might price pull back before continuing?'
Is my data stored or sent to a server?
No. All calculations run entirely in your browser using JavaScript. No data you enter is ever transmitted to any server or stored anywhere. Your inputs remain completely private.
How do I verify Fibonacci Retracement Calculator's result independently?
The Formula section on this page shows the equation used. You can reproduce the calculation manually or in a spreadsheet using those steps. Compare your answer against the worked examples in the Examples section, which use known reference values so you can confirm the calculator is behaving as expected.
References
Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy