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Back to Indicators
Support & ResistanceLeading

Fibonacci Retracements & Extensions

Overview

Fibonacci Retracements and Extensions use mathematical ratios derived from the Fibonacci sequence to identify hidden support and resistance levels that the market frequently respects. They are indispensable for traders across stocks, crypto, and forex, and pair naturally with the ZigZag indicator for precise swing-point anchoring. Master Fibonacci tools on TradingView and integrate them into your trading strategies.

How It Works

Retracement levels (23.6%, 38.2%, 50%, 61.8%, 78.6%) are plotted between a swing high and swing low to identify where pullbacks may find support or resistance. Extension levels (127.2%, 161.8%, 261.8%) project beyond the swing to estimate profit targets. The 61.8% golden ratio is statistically the most-respected level.

Key Signals

  • Price bouncing at the 61.8% retracement = high-probability support in an uptrend.
  • Price stalling at a 161.8% extension = common profit-taking zone.
  • Confluence of Fibonacci levels with other support/resistance = strong zone.
  • Multiple timeframe Fibonacci alignment increases the significance of levels.

Common Mistakes

  • Drawing Fibonacci from the wrong swing points — use the ZigZag indicator for clarity.
  • Over-fitting Fibonacci to every minor move — it works best on clear swings.
  • Treating Fibonacci levels as exact prices instead of zones.

More Support & Resistance Indicators

Pivot Points

Pivot Points calculate key support and resistance levels based on the previous period's high, low, and close — including Standard, Woodie, Camarilla, and Fibonacci variations. They are the primary intraday level framework for <a href="/market/forex" class="text-primary hover:underline">forex</a> and <a href="/market/stocks" class="text-primary hover:underline">stock</a> day traders worldwide. Combine Pivot Points with <a href="/academy/indicators/vwap" class="text-primary hover:underline">VWAP</a> on <a href="/tools/platforms/tradingview" class="text-primary hover:underline">TradingView</a> for institutional-grade level analysis.

Gann Fan / Gann Square

Gann Fan and Gann Square tools use geometric angles based on W.D. Gann's time-and-price equilibrium theories to project support, resistance, and potential reversal zones into the future. These tools are favoured by advanced <a href="/market/stocks" class="text-primary hover:underline">stock</a> and <a href="/market/forex" class="text-primary hover:underline">forex</a> traders who incorporate time analysis. Explore Gann tools on <a href="/tools/platforms/tradingview" class="text-primary hover:underline">TradingView</a> and compare with <a href="/academy/indicators/fibonacci-retracements" class="text-primary hover:underline">Fibonacci methods</a> in our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a>.

Bill Williams Fractals

Bill Williams Fractals identify local highs and lows using a simple five-bar sequence — an up fractal marks a potential resistance point and a down fractal marks support. They are foundational to the Bill Williams trading system alongside the <a href="/academy/indicators/alligator" class="text-primary hover:underline">Alligator</a> and <a href="/academy/indicators/awesome-oscillator" class="text-primary hover:underline">Awesome Oscillator</a>. Use Fractals on <a href="/tools/platforms/tradingview" class="text-primary hover:underline">TradingView</a> as breakout triggers in your <a href="/strategies" class="text-primary hover:underline">trading strategies</a>.

Andrews' Pitchfork

Andrews' Pitchfork draws a three-pronged trend channel from a significant pivot point through the midpoint of a subsequent high and low, creating a median line that price is statistically drawn toward. It is a powerful tool for projecting future support and resistance in <a href="/market/stocks" class="text-primary hover:underline">stocks</a> and <a href="/market/forex" class="text-primary hover:underline">forex</a>. Draw it using <a href="/tools/platforms/tradingview" class="text-primary hover:underline">TradingView's</a> built-in pitchfork tool and combine with <a href="/academy/indicators/fibonacci-retracements" class="text-primary hover:underline">Fibonacci levels</a> for confluence.

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