Fibonacci Retracement
Also called: fib levels, fibonacci levels
Horizontal levels (38.2%, 50%, 61.8%) marking where a pullback within a trend often finds support or resistance.
Fibonacci retracements divide a prior swing (low to high in an uptrend) by ratios derived from the Fibonacci sequence — 23.6%, 38.2%, 50%, 61.8% and 78.6%. The 38.2–61.8% zone is the most-watched area for a pullback to find support and the trend to resume.
Extensions (127.2%, 161.8%) project beyond the prior swing as profit targets. Fib levels work partly because so many traders plot them, so they're best used as a confluence tool alongside structure and volume, not as a standalone signal.
On StockSetups
StockSetups offers a free Fibonacci retracement calculator under /tools, and the patterns it detects pair naturally with fib levels — a bull flag retracing to its 61.8% into prior support is a stronger setup than the fib level alone.
Frequently asked
What are the main Fibonacci retracement levels?
23.6%, 38.2%, 50%, 61.8% and 78.6%. The 38.2–61.8% zone is the area most traders watch for a pullback to hold and the trend to continue.
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