Fibonacci levels are a popular technical analysis tool to provide traders with support and resistance levels and objective price targets.
Fibonacci retracements are created by taking two extreme points on a chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 61.8% and 100%. Many traders also like using the 50% and 76.4% levels.
Fibonacci extensions consist of levels drawn beyond the standard 100% level and are used by many traders to determine profit targets in trending trades. Popular extension levels are 138.2%, 161.8%, 200%, and 261.8%.
To use the Fibonacci Calculator, enter the High value and Low value of a range, such as the High and Low of the previous day. For 4-digit or 5-digit currency pairs, enter the digits to right of the decimal. For instance, if the value is 1.1550, enter 1550. For 2-digit or 3-digit currency pairs, enter the complete value such as 120.25.
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