Trading with the Fibonacci Levels Tool
Last updated on October 19, 2024
Map Potential Reversal Zones with Fibonacci Levels
The Fibonacci tool generates retracement and extension levels based on recent price swings, helping you plan entries, exits, and stop placements.
When to Use Fibonacci Analysis
- After strong trends to identify pullback zones.
- To project breakout targets beyond recent highs/lows.
- Alongside support/resistance and moving averages for confluence.
Selecting Swing Points
- Open Tools → Fibonacci Calculator.
- Choose the instrument and timeframe you're analyzing.
- Enter the most recent swing high and swing low prices.
- Indicate trend direction (uptrend or downtrend).
- Click Generate Levels.
Result includes:
- Retracement levels (23.6%, 38.2%, 50%, 61.8%, 78.6%).
- Extension levels (127.2%, 161.8%, 261.8%).
- Price levels for each percentage.
- Suggested stop-loss zones relative to 61.8% and swing extremes.
Advanced Settings
- Toggle minor levels (11.8%, 88.6%) for fine-tuned entries.
- Overlay the levels on an interactive price chart.
- Save templates (e.g., "EURUSD H1 trend") for quick reuse.
- Export levels to your MT4/MT5 or TradingView layouts.
Strategy Tips
- Wait for confirmation (candlestick patterns or volume) at key levels.
- Use extensions for take-profit targets in trending markets.
- Combine with RSI or MACD to avoid entering against momentum.
- Adjust for volatility—widen stops if ATR is elevated.