Fibonacci levels are a powerful technical analysis tool which lets a trader define both possible aims of trend retracement and extension and major resistance and support levels.
The three Fibonacci levels - 38.2%, 50% and 61.8% - are called “Fibonacci retracement levels”. The 38.2% and 61.8% retracements are the most significant. They are often called “the first retracement level” (38,2%) and “the second retracement level” (61,8%) or just the 38% or 62% retracements. These levels are symmetrical with respect to the 50% level. The levels 100%, 138,2% and 161,8% are called “Fibonacci extension levels”.
When drawing Fibonacci retracement and extension levels it’s necessary to define the market range from the swing point low to the swing point high of the correspondent low and high bars in an uptrend and from the swing point high to the swing point low of the correspondent high and low bars in a downtrend.
The given Fibonacci Calculator will enable you to calculate major retracement and extension levels in uptrends and downtrends.
To calculate the levels you’ll have to fill in the “High price” and “Low price” rows for the given trend and to press the “Calculate” button.
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