Question 1

What is a Fibonacci calculator?

Accepted Answer

It plots the standard Fibonacci retracement (23.6%, 38.2%, 50%, 61.8%, 78.6%) and extension (127.2%, 161.8%, 261.8%) levels between any two price points — typically a swing high and swing low.

Question 2

How are Fib levels calculated?

Accepted Answer

For retracements: Level = High − (High − Low) × ratio. For extensions: Level = High + (High − Low) × (ratio − 1). Bizzlytics computes all common levels instantly.

Question 3

Why do traders use Fibonacci levels?

Accepted Answer

Because collective attention makes them work — many algos and traders place stops/entries/targets exactly at 38.2%, 50% and 61.8%. Confluence with structure or volume dramatically improves reliability.

Question 4

Example calculation

Accepted Answer

Swing high 120, swing low 100. 38.2% retracement = 120 − (20 × 0.382) = 112.36. 61.8% retracement = 120 − (20 × 0.618) = 107.64. 161.8% extension = 120 + (20 × 0.618) = 132.36.

Question 5

Common mistakes to avoid

Accepted Answer

1) Picking arbitrary swing points. 2) Using Fibs as sole trigger without confluence. 3) Ignoring higher timeframe levels. 4) Fitting Fib retracements after price has already moved (curve-fitting).

Question 6

Related tools

Accepted Answer

Combine Fibonacci with the Risk/Reward Calculator (to plan targets at 1.618 extensions) and Position Size Calculator (to size once stop is defined at the invalidation level).

Fibonacci Calculator

The formula

Frequently asked questions

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