Fibonacci Retracement & OTE Calculator

What this calculator does

Fibonacci retracement maps where price is likely to pause or reverse after an impulsive move, then measures how far a continuation could run. This tool takes the two anchors that define a swing — the swing high and swing low — plus a direction, and returns every standard retracement (0.236, 0.382, 0.5, 0.618), the ICT Optimal Trade Entry (OTE) band (0.62, 0.705, 0.79), and the projection levels (1.272, 1.618). You get a complete entry-and-target map without dragging the tool across a chart by hand.

The formula

For a bullish setup (you expect the prior up-move to resume after a pullback), each level sits below the high by a fraction of the swing range:

range = high − low
level = high − (range × ratio)

A ratio of 0 returns the high itself; 1 returns the low (a 100% retracement); ratios above 1 (1.272, 1.618) project beyond the low as extension targets. For a bearish setup the geometry flips — you measure up from the low: level = low + (range × ratio).

The "magic" ratios come from the Fibonacci sequence. Dividing any term by the next (e.g. 55/89) approaches 0.618, the golden ratio's inverse; the square root of 0.618 is roughly 0.786, which is why the 0.79 level anchors the deep end of the OTE zone. The 0.5 level isn't Fibonacci at all — it's just the midpoint, kept by convention.

Worked example

Take a bullish EUR/USD swing: high 1.1000, low 1.0800. The range is 200 pips (0.0200).

• 0.236 → 1.1000 − (0.0200 × 0.236) = 1.09528
• 0.382 → 1.09236
• 0.500 → 1.09000
• 0.618 → 1.08764
• 0.705 → 1.08590
• 0.790 → 1.08420

So the OTE zone runs from 1.08764 down to 1.08420 — the discounted area where ICT-style traders look to enter long with a stop just below the 0.79 (or below the swing low) and targets at the 1.272/1.618 extensions: 1.272 → 1.07456 and 1.618 → 1.06764 measured the same way. A trade taken at the 0.705 (1.08590) with a stop below the low (1.0800) risks ~59 pips to target the prior high and beyond — a favorable risk-to-reward when the level holds.

Edge cases and pitfalls

• Anchoring is everything. Two traders on the same chart get different levels because they pick different swings. Anchor to the high and low of the single impulse leg you're trading, not an arbitrary multi-week range. Garbage anchors produce confident-looking garbage levels.
• Direction must match the move you're fading. In a bullish retracement you're buying a dip inside an up-move; if you flip the inputs, the OTE band lands on the wrong side and your stop logic inverts. Set direction to the trend you expect to continue.
• Levels are zones, not laser lines. Price routinely overshoots the 0.618 and wicks into the 0.79 before turning. That's why OTE is a band — sizing for a fill anywhere in 0.62–0.79 beats a single limit order at one decimal place.
• Retracement ≠ reversal. A clean tag of the 0.618 means nothing without confirmation (structure shift, order block, displacement). The calculator gives you the geometry; the chart context gives you the trade.

The deepest OTE entries are also where execution cost matters most — tight, raw spreads keep your stop-to-entry distance honest. NX Pro's raw spreads from 0.0 pips are built for exactly that kind of precision entry.