The Fibonacci calculator hints you the retracement and extension levels based on the popular Fibonacci theory in forex trading.
The Fibonacci Calculator assists the trader calculate the Fibonacci retracements and extensions regarding extreme points on the chart.
suppose you intend to calculate the Fibo points of an uptrend on the EUR/USD between 1.0800 and 1.1000, input these rates in the Low and High fields to achieve the possible retracements according to Fibonacci. The custom field just impacts the “Extensions” calculation.
If the chart already depicts a full retracement move (let’s say the market went up from 1.0800 to 1.1000 and then retraced from 1.1000 to 1.0850 and started moving up again), you can enter the ‘turning point’ rate (1.0850) in the “Custom” field to see potential extension rates .for instance, referring the Fibonacci Extension, a 200% extension will reach 1.1250.
The same thing applies for downtrend moves (e.g., if the market moved from 1.1000 to 1.0800).