JoymistaWhat Is Fibonacci Retracement and How Is It Calculated?
Fibonacci retracements are levels that measure how far price pulls back from a prior move; the best known are 23.6%, 38.2%, 50%, 61.8% and 78.6%.
Explained
You draw the tool from the move’s low to its high in an uptrend (the reverse in a downtrend), and each level shows a possible area for the pullback to stop. The levels do not work on their own; they matter more when they line up with support or resistance.
Example
Example with made-up numbersPrice rises from 100 to 200. The 61.8% level sits at 200 − 0.618 × 100 = 138.2, and the 50% level at 150.
Use it in Joymista
Related terms
- Harmonic PatternsHarmonic patterns are five-point price patterns, X, A, B, C and D, defined by Fibonacci…
- Support and ResistanceSupport is a price zone where falls stopped before because buyers took over; resistance…
- Trend LineA trend line joins two rising lows in an uptrend, or two falling highs in a downtrend, to…
Put it to work in Joymista
Signing up is free, some tools are free, and one subscription unlocks the rest.
Open in JoymistaEducational content, not investment advice.