Calculate Fibonacci retracement and extension levels
Fibonacci retracements identify potential support and resistance levels based on the Fibonacci sequence ratios: 23.6%, 38.2%, 50%, 61.8%, and 78.6%.
In an uptrend, retracement levels are measured downward from the high. The 61.8% level (the golden ratio) is considered the most significant — price often bounces from this level.
Extension levels (127.2%, 161.8%, 261.8%) project potential price targets beyond the original move. These are used to set take-profit levels.
