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Fibonacci Retracement Level

Calculates potential support or resistance price levels based on Fibonacci ratios between a recent price swing high and low.

Written by the Vorzep Team

CryptoTradingTechnical Analysis

Fibonacci Retracement Calculator Level Calculator

Lvl = H − (H − L) × R
Lvl = Retracement Level  ·  H = High  ·  L = Low  ·  R = Ratio (0–1)
⟹ Solve ⟷ Lvl, H, L, R
price
price
0–1
price
Please fix the errors above.
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Presets:
Retracement Level —
—
H: — L: — R: — Lvl: —
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Level Position —
Shallow (R < 0.382) Medium (0.382–0.618) Deep (R > 0.618)
Lvl = H − (H − L) × R  ·  Ratio R typically between 0 and 1; common Fibonacci levels: 0.236, 0.382, 0.5, 0.618, 0.786

Variables

SymbolQuantityUnit
LevelRetracement price levelcurrency
HighSwing high pricecurrency
LowSwing low pricecurrency
RatioFibonacci ratio (0.236, 0.382, 0.5, 0.618, 0.786)

What it means

Fibonacci retracement levels are used to identify potential reversal levels in a trend. They are based on the idea that prices often retrace a portion of a move. The ratios are derived from the Fibonacci sequence. This is used by traders to identify entry and exit points. Understanding Fibonacci levels is common in technical analysis, especially in trending markets.

Worked example

Fibonacci Retracement Level – Two Detailed Examples

Real‑World
Scenario: BTC moves from a high of 65,000 to a low of 55,000. The 61.8% retracement level is High - (High - Low) × 0.618 = 65,000 - (10,000 × 0.618) = 65,000 - 6,180 = 58,820. This level often acts as support. The trader places a buy order near this level.
ParameterValue
High65,000
Low55,000
Ratio0.618
1Retracement = 65000 - (65000 - 55000) × 0.618 = 65000 - 10000 × 0.618 = 65000 - 6180 = 58,820
Result 58,820 ✓ 61.8% level
Scenario: ETH high 3,400, low 2,800. The 50% level is 3,400 - (600 × 0.5) = 3,400 - 300 = 3,100. This is a common support/resistance level. The trader uses it to set profit targets.
ParameterValue
High3,400
Low2,800
Ratio0.5
1Level = 3400 - (3400 - 2800) × 0.5 = 3400 - 300 = 3,100
Result 3,100 ✓ 50% level
Insight: Fibonacci retracement levels (23.6%, 38.2%, 50%, 61.8%, 78.6%) are used to identify potential support and resistance levels during pullbacks in a trend.

Common mistakes

  • Fibonacci retracement: Uses key ratios (0.236, 0.382, 0.5, 0.618, 0.786).
  • High and Low: The swing high and swing low of the trend.
  • Level: The price level at the given retracement ratio.
  • Support/Resistance: These levels often act as support or resistance.

Applications

Fibonacci retracement levels calculate potential support and resistance levels based on the Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%). Traders use these levels to identify possible reversal points after a significant price move. By applying the ratios to the high‑low range, they can set entries and exits. Fibonacci retracement is a popular tool in technical analysis, especially in trending markets.

  • Identifying potential support and resistance levels
  • Setting entry and exit points for trades
  • Confluence with other indicators for higher probability setups
  • Trend continuation and reversal analysis
  • Educational understanding of Fibonacci theory