The Fibonacci calculator tool allows you to calculate retracement & extension levels in both bull and bear markets. In rising markets, traders look for buy signals in the 38.2% retracement area (buy on dips). In bear markets, traders look for sell signals in the 38.2% retracement area (sell on rallies). To use fibonacci retracements, traders must find the beginning and end of an up trend or a downtrend. Extension levels are mainly used to take profits.
How to use the Fibonacci calculator? Input the start “A” and end “B” values of the previous market move (swing low and swing high) and then press the “Go” button to calculate the appropriate retracement & extension levels.