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Fibonacci Retracement (Alt + F)

Fibonacci Retracement is a powerful technical analysis tool that helps identify potential support and resistance levels during price corrections. These levels are based on key ratios derived from the Fibonacci sequence.

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How to Use

  1. Select the Fibonacci Retracement tool (Alt + F)
  2. Click at the starting point of the trend (first extreme point)
  3. Drag to the second extreme point and click to complete
    • For uptrends: Start at low, drag to high
    • For downtrends: Start at high, drag to low

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Key Fibonacci Levels

The tool automatically creates horizontal lines at key percentage levels:
  • 0% (start of the measured move)
  • 23.6%
  • 38.2%
  • 50% (not actually a Fibonacci ratio but widely used)
  • 61.8%
  • 78.6%
  • 100% (end of the measured move)

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Practical Applications

  • Identify potential reversal zones during retracements
  • Set strategic entry points after pullbacks
  • Place stop-loss orders below/above key levels
  • Determine price targets for trades
  • Confirm support/resistance with other indicators

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Customization Options

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Trend Line Settings

  • Toggle trend line visibility
  • Change line color and opacity
  • Adjust line thickness

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Level Line Settings

  • Modify line thickness and style
  • Add custom levels (click “Add level” at bottom of level list)
  • Remove unwanted levels

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Background Options

  • Enable/disable background fill between levels
  • Adjust background opacity

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Display Options

  • Reverse: Flip the retracement vertically
  • Prices: Show price values next to each level
  • Levels: Toggle visibility of level percentages
  • Labels: Position level values along the line
  • Font size: Adjust text size

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Precise Positioning

Fine-tune placement using the Coordinates properties:
  • Price 1: Set exact position of first point (bar number and price)
  • Price 2: Set exact position of second point (bar number and price)
Pro Tip: Former resistance levels often become support levels after breakouts. Pay special attention to how price reacts at the 38.2% and 61.8% retracement levels, as these often provide strong support/resistance.

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Fibonacci Extension (Alt + Shift + F)

Fibonacci Extension helps identify potential price targets beyond the original trend. It’s particularly useful for setting profit targets and identifying possible reversal zones after a retracement has completed.

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How to Use

  1. Select the Fibonacci Extension tool (Alt + Shift + F)
  2. Click to place the first point at the beginning of the move
  3. Click to place the second point at the end of the initial move
  4. Click to place the third point at the end of the retracement
    • The extensions will project beyond the second point

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Key Extension Levels

Common extension levels include:
  • 100% (the length of the original move)
  • 127.2%
  • 138.2%
  • 161.8%
  • 200%
  • 261.8%

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Practical Applications

  • Project potential price targets beyond previous highs/lows
  • Identify possible reversal points after strong trends
  • Set profit-taking levels for trend-following trades
  • Plan position sizing based on risk/reward at extension levels
  • Confirm price objectives from other technical methods

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Customization Options

The Fibonacci Extension tool offers the same customization options as the Retracement tool:
  • Line appearance settings
  • Level configuration
  • Background options
  • Text display preferences

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Precise Positioning

The Coordinates properties allow exact placement of all three points:
  • Price 1: First point of the move (starting point)
  • Price 2: Second point of the move (end of initial move)
  • Price 3: Third point (end of retracement)