Ch 6 · Indicator
Pivot Both

Fibonacci Retracement

Horizontal levels at 23.6% / 38.2% / 50% / 61.8% / 78.6% drawn between a swing low and swing high (or vice-versa).

Formula

Level(pct) = swingHigh − (swingHigh − swingLow) × pct

What it's for

Locate high-probability pullback zones in trending markets, especially 38.2%–61.8% band. Combined with EMAs or S/R for confluence.

When it fails

Highly subjective — different anchor pivots yield different levels. Not every pullback respects Fib.

On the chart

Nifty 50 daily bars with Fibonacci Retracement pre-loaded:

Where it's used on this site

2 strategies use Fibonacci Retracement: