FIBONACCI LEVELS CALCULATOR
The calculator will generate basic Fibonacci retracement and extension values which act as powerful tool for bounce backs and breakouts. Fill the boxes with the current trend’s highest (swing high) and lowest values (swing low) and press the “Calculate” button.
Fibonacci retracement & extension analysis and calculation
Fibonacci series of numbers is derived by starting with 1 followed by 2 and then adding 1+2 to get 3, the third number. Then, adding 2+3 to get 5, the fourth number, and so on – 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144……
For retracement levels, the ratios are derived by dividing any number in the series by the next higher number. These levels are used in trading as possible support and resistance levels.
For extension levels, you divide any Fibonacci number by the preceding number. These levels are used in trading as possible profit taking levels.
Fibonacci retracement & extension levels are a powerful tool of a technical analysis. The main idea behind these levels is the support and resistance values along with take profit levels for an underlying at which the most important breaks or bounces can appear. As a technical analysis tool, Fibonacci levels have proven themselves to be very effective as most of the traders watch & follow them and put buy, sell, stop-loss, take-profit, limit orders on or around their values. So it automatically becomes a self-fulfilling expectation.