# 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