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MasterMath

Fibonacci Retracement Calculator

A move from 100 to 200 puts the 61.8% retracement at 138.20, the 50% at 150 and the 38.2% at 161.80. All the levels, plus the extensions beyond the move.

Currency and number format for

61.8% retracement

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61.8% retracement—
38.2% retracement—
50% retracement—
All the retracements—
161.8% extension—
Range of the move—

How this was worked out

    Indicative result. Nothing here is investment advice. Fibonacci levels are a convention with no proven predictive power.

    The formula

    level = high − (high − low) × ratio

    Where it comes from

    Fibonacci retracements mark fractions of a completed move as places a pullback might stop. The ratios come from the Fibonacci sequence — 0.382 and 0.618 are its limiting proportions — with 0.5 added because traders find halves useful, despite having nothing to do with Fibonacci at all.

    How to work it out by hand

    1. Measure the range: the high minus the low of the move
    2. Multiply the range by each ratio
    3. Subtract from the high for an uptrend, add to the low for a downtrend
    4. Extensions use ratios above 1 to project beyond the move

    What is worth knowing

    It is worth being honest about what this is. There is no mechanism connecting the Fibonacci sequence to asset prices, and studies looking for predictive power in these levels have generally not found any. What they do provide is a shared, unambiguous grid that a great many traders draw on the same chart, which makes the levels act as reference points through nothing more than coordination. Used as one input among several — alongside prior highs and lows, which often coincide — they are a reasonable framing device. Used as a forecast, they are astrology with better marketing.

    Frequently asked questions

    Why 61.8% and 38.2%?

    They are the limiting ratios of the Fibonacci sequence: each number divided by the next approaches 0.618, and by the one after that, 0.382.

    Is 50% a Fibonacci level?

    No. It is included by convention because half a move is a natural reference, but it has no connection to the sequence.

    Do Fibonacci levels predict anything?

    There is no good evidence that they do. They function as coordination points because many traders draw the same lines, which is a different thing from prediction.

    What are extensions for?

    Projecting targets beyond the original move, most commonly at 161.8%. The same caveat applies: they are a convention, not a forecast.