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How to Use the Fibonacci Calculator
The Fibonacci Calculator helps traders quickly determine key Fibonacci retracement and extension levels. These levels are widely used in technical analysis to identify potential support and resistance zones, allowing traders to make informed entry and exit decisions.
Step-by-Step Guide to Using the Fibonacci Calculator
- Select Fibonacci Type: Retracement or Extension
- Choose Retracement if youβre looking for pullback levels after a price move.
- Choose Extension if you want to identify potential profit targets beyond the recent price movement.
- Enter the Swing High and Swing Low
- For an uptrend: Enter the lowest point (Swing Low) and the highest point (Swing High) of the move.
- For a downtrend: Enter the highest point (Swing High) and the lowest point (Swing Low).
- Click βCalculateβ
- The calculator will generate Fibonacci levels based on your inputs.
Understanding Fibonacci Levels
- Retracement Levels (for pullbacks):
- 23.6% β Minor retracement, often not significant.
- 38.2% β First strong support/resistance level.
- 50.0% β Psychological level (not a Fibonacci number, but widely used).
- 61.8% β Golden ratio; a key level where price often reverses.
- 78.6% β Deep retracement level before a potential trend continuation.
- Extension Levels (for profit targets):
- 127.2% β First extension target.
- 161.8% β Golden ratio extension, often a major resistance/support.
- 200% & 261.8% β Extended targets for strong trends.
Example Calculation
Letβs say EUR/USD moves from 1.1000 to 1.1200 in an uptrend.
- A 38.2% retracement level would be around 1.1124.
- A 61.8% retracement level would be near 1.1076.
- A 161.8% extension target would be around 1.1308 if the price continues higher.
Why Use the Fibonacci Calculator?
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Saves Time β Instantly calculates key levels without manual work.
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Improves Trade Planning β Helps identify potential reversal or breakout points.
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Works on Any Market β Useful for Forex, stocks, and crypto trading.
Use the Fibonacci Calculator now on AllTradersHub to enhance your trading strategy and improve accuracy in spotting key market levels! π