How to Calculate Fibonacci Retracement Levels - Tutorial

How to Calculate Fibonacci Retracement Levels - Definition, Formula, Example

Definition:

Fibonacci retracement is a method of the potential analysis for reversal levels for the asset's target prices or stop losses.

Formula:

UR = H - ((H-L)×percentage) UE = H + ((H-L)×percentage) DR = L + ((H-L)×percentage) DE = L - ((H-L)×percentage)
Where,
H = High Range L = Low Range UR = Uptrend Retracement UE = Uptrend Extention DR = Downtrend Retracement DE = Downtrend Extention

Example :

Calculate the fibonacci retracement's uptrend and downtrend levels for A, when high range is 1000 points and low range is 900.

Given :

High Range (H) = 1000 Gross Margin (G) = 900

To Find :

Fibonacci Retracement Levels

Solution :

Differenc(H-L) = 1000 - 900 = 100

Uptrend
Retracements Extentions
0% 1000 - (100x0) 261.8% 1000 + (100x2.618)
23.6% 1000 - (100x0.236) 200% 1000 + (100x2)
38.2% 1000 - (100x0.382) 161.8% 1000 + (100x1.618)
50% 1000 - (100x0.5) 138.2% 1000 + (100x1.382)
61.8% 1000 - (100x0.618) 100% 1000 + (100x1)
76.4% 1000 - (100x0.764) 61.8% 1000 + (100x0.618)
100% 1000 - (100x1)
138.2% 1000 - (100x1.382)
Downtrend
Retracements Extentions
138.2% 900 + (100x1.382) 61.8% 900 - (100x0.618)
100% 900 + (100x1) 100% 900 - (100x1)
76.4% 900 + (100x0.764) 138.2% 900 - (100x1.382)
61.8% 900 + (100x0.618) 161.8% 900 - (100x1.618)
50% 900 + (100x0.5) 200% 900 - (100x2)
38.2% 900 + (100x0.382) 261.8% 900 - (100x2.618)
23.6% 900 + (100x0.236)
0% 900 + (100x0)
Result :
Uptrend
Retracements Extentions
0% $1000 261.8% $1261.8
23.6% $976.4 200% $1200
38.2% $961.8 161.8% $1161.8
50% $950 138.2% $1138.2
61.8% $938.2 100% $1100
76.4% $923.6 61.8% $1061.8
100% $900
138.2% $861.8
Downtrend
Retracements Extentions
138.2% $1038.2 61.8% $838.2
100% $1000 100% $800
76.4% $976.4 138.2% $761.8
61.8% $961.8 161.8% $738.2
50% $950 200% $700
38.2% $938.2 261.8% $638.2
23.6% $923.6
0% $900

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