Fibonacci Retracement

Fib Retracement
Visual Reference

Optimal TradingView settings, color scheme, and trading playbook — all in one place.

Level Hierarchy
Fibonacci Levels — Importance & Color Map
Levels ranked by relevance. Golden Pocket zone highlighted.
0
Anchor Point Swing low / high start
0.236
Shallow Pullback Optional — low priority
0.382
Key Retracement Strong trend bounce zone
0.5
Psychological Mid Not Fibonacci, but respected
0.618
⭐ Golden Ratio Highest probability reversal
0.65
⭐ Golden Pocket End Add manually in settings
0.786
Deep Retracement Last defense before reversal
1.0
Full Retracement Trend invalidated
-0.618
Extension TP1 Conservative profit target
-1.618
Extension TP2 Aggressive target — strong trends
TradingView Configuration
🎨

Color Scheme

Copy these hex values into TradingView's Fib settings

Structural Gray
#64748B
0, 0.236, 1.0
Signal Blue
#3B82F6
0.382
Caution Yellow
#EAB308
0.5
Golden Pocket
#F59E0B
0.618, 0.65
Danger Red
#EF4444
0.786
Profit Green
#22C55E / #4ADE80
-0.618, -1.618
⚙️

Style Settings

Recommended TradingView Fib tool configuration

  • Background fills: ON — set opacity ~15% between 0.618 and 0.65 (gold)
  • Line thickness: Thin (1px) for structural, Medium (2px) for 0.382/0.5/0.786, Thick (3px) for Golden Pocket
  • Show Prices: ON — see exact $ values at each level
  • Show Levels: ON — see % labels
  • Trend line: ON, dashed, dim gray
  • Extend right: ON — covers future price action
  • Add 0.65: Manually in custom level row
  • Disable clutter: Turn off 0.146, 0.886, and any levels you don't use
Quick Reference

Level-by-Level Playbook

Level Zone Action Line Style
0 / 1.0 Anchor Reference only — marks the swing range Thin, gray, solid
0.236 Shallow Weak reaction zone — skip unless scalping Thin, light gray, dotted
0.382 Support Watch for bounce in strong trends Medium, blue, solid
0.5 Mid-Point Psychological level — confluence booster Medium, yellow, dashed
0.618 Golden Primary entry zone — look for candle confirmation Thick, gold, solid
0.65 Golden Golden Pocket end — SL just below 0.786 Thick, gold, solid
0.786 Danger Deep pullback — trend weakening, tight SL Medium, red, dashed
-0.618 Target Take Profit 1 — conservative exit Medium, green, dashed
-1.618 Target Take Profit 2 — let runners ride Medium, bright green, dotted
Trading Tips
01

Draw Consistently

Always use the same method — either wick-to-wick or close-to-close. Mixing them creates unreliable levels. Pick one and stick with it across all your charts.

02

Seek Confluence

A Fib level alone is a suggestion. A Fib level stacked with a horizontal S/R, a moving average, or a volume node becomes a high-probability zone. The more confluence, the better the trade.

03

Wait for Confirmation

Don't blindly enter at a Fib level. Wait for a reaction — engulfing candles, pin bars, RSI divergence, or a volume spike. Let price prove the level is being respected before committing.

04

Higher Timeframes Win

Fib levels on the daily, weekly, and 4H charts carry far more weight than on the 5-minute. Use lower timeframes for entry timing, but anchor your fibs on the higher TF structure.

05

Stop-Loss Placement

If entering at the Golden Pocket (0.618–0.65), place your stop-loss just below the 0.786 level. This gives the trade room to breathe while keeping risk defined and controlled.

06

Extensions for Exits

Use -0.618 as a conservative TP and -1.618 for runners. In strong trends with momentum, price frequently reaches the -1.618 extension — trail your stop once TP1 is hit.

Drawing Direction
📈

Uptrend (Bullish)

Draw from Swing LowSwing High

Click the bottom of the move first, then drag up to the top. The retracement levels will appear below the high, showing where price may pull back to before continuing higher.

📉

Downtrend (Bearish)

Draw from Swing HighSwing Low

Click the top of the move first, then drag down to the bottom. The retracement levels will appear above the low, showing where price may retrace to before dropping further.