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Can someone tell me how to calculate these fibonacci extension values?

For example, this extension is from 300.50 to 89.29.

Now, when I look at the .786 or .618 values, I figured you just multiply .786 or .618 times 300.50 to get those values, which according to the extension is 255.30 and 219.81.

But, if you multiply .786 x 300.50 you get 236.19 and 300.50 x .618 = 185.71.

Can someone tell me how to get those values calculated by the extension?

Thanks.

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1 Answer 1

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Fibonacci Retracements are created by first examining the distance between two points. In your chart there is a line between 89.29 and 300.5. The distance is solved for by subtracting the beginning point from the end point: 300.5 – 89.28 = 211.21

The distance (211.21) is then multiplied by the Fibonacci Ratios of 23.6%, 38.2%, 61.8%

For example take the first one 23.6: 211.21 X .236 = 48.85

Then you add back in your starting point, in this case 89.29: 48.85 + 89.29 = 139.14

and so on for the other ratios

I rounded these numbers to two decimal places for simplicity if you plug in actual values in a spreadsheet you can match what trading view comes up with.

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  • When I look over your answer, I keep thinking to myself, why I didn't see that :) Anyways, thank you so much!
    – linstar
    Commented Dec 29, 2021 at 3:40
  • Thanks I had to look at that chart for a few to see what they were doing.
    – turtle
    Commented Dec 29, 2021 at 16:25

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