TradingView setup

Fibonacci retracement settings: anchors, ratios and scale

A reproducible Fibonacci setup records the swing anchors, level orientation and calculation scale. The level list alone is insufficient: two drawings can show the same ratios at different prices if any of those inputs differ.

Direct answer

One example set is 0, 0.236, 0.382, 0.5, 0.618, 0.786 and 1. This page defines 0 at the end of the swing and 1 at its start. Show both price and ratio, check Reverse, and record whether the calculation is linear or logarithmic. No universal best settings are established here.

Inputs to record before calculating

Core levels

0 to 1, with five pullback ratios

Bullish anchor

Completed swing low to swing high

Bearish anchor

Completed swing high to swing low

Scale rule

Match the Fib calculation to the chart scale

A clean baseline level set

This template covers shallow, middle, and deep pullbacks without filling the chart with lines. The levels are reference zones, not automatic entries.

LevelKeep it?What it tells you
0YesThe end of the measured move
0.236YesA shallow retracement measurement, without a trend-strength conclusion
0.382Yes38.2% back through the selected swing
0.5YesThe midpoint, widely watched but not a Fibonacci ratio
0.618YesThe golden-ratio pullback level
0.786YesA deep pullback near the edge of the measured swing
1YesThe start of the measured move
-0.272 and -0.618OptionalBeyond the swing end under this 0-at-end convention

A repeatable chart workflow

  1. 1

    Choose the trading timeframe

    Use the timeframe that controls the decision. A daily setup should not use anchors picked from a noisy five-minute move.

  2. 2

    Mark a completed impulse

    Pick a clear swing with a visible start and end. If the latest pivot is still forming, wait rather than moving the anchor every bar.

  3. 3

    Draw in the direction of the move

    For an advance, draw from the swing low to the swing high. For a decline, draw from the swing high to the swing low.

  4. 4

    Open Style and remove clutter

    Keep prices and level values visible. Turn off ratios you do not use, reduce background opacity, and extend lines only as far as the analysis needs.

  5. 5

    Write the confirmation rule

    Decide what must happen at a level before it matters, such as a close back above the zone, a volume condition, or a break of local structure.

Keep the settings reproducible

Save one versioned template so changing the ticker does not silently change the formula.

Choose anchors on the timeframe that defines the setup; record any later timeframe used for trigger timing.

Choose ratios before reviewing outcomes. Evaluate additional levels on separate data rather than adding lines that fit a past trade.

The ratios are only half of the setup

Two traders can use the same ratios and get different lines because they chose different pivots. Start with the price move you are trying to measure. A completed impulse should be obvious without moving the anchors to make a later bounce look accurate.

State whether anchors use full candle extremes or bodies. If a suspected bad print is excluded, retain the original feed observation and the reason for the exclusion; do not change the rule simply because a later reaction looks closer.

What to change in the TradingView Style panel

TradingView lets you toggle individual ratios, prices, labels, background fill, line extensions, and the Reverse option. Show both price and ratio until you can audit the drawing without opening settings. Keep the background faint so candles remain readable.

Reverse is useful when the level order appears upside down, but it should not cover a bad anchor choice. Check the first and second coordinates before flipping the drawing.

  • Use one line color or a small color family instead of a different bright color for every ratio.
  • Keep 0 and 1 visible so the measured range is clear.
  • Under this 0-at-end convention, use negative levels for projections beyond the swing end. Positive levels above 1 lie beyond the swing start; check displayed prices before comparing another tool.
  • Lock the drawing after the anchors are final to prevent accidental movement.

Record the calculation scale separately

TradingView has a "Fib levels based on log scale" option when the chart uses a logarithmic price scale. That setting changes the level calculation. It can matter on a large crypto move or a long stock history where percentage change is more useful than equal dollar spacing.

A logarithmic display can still use linear Fibonacci prices if that is the chosen measurement. What matters for comparison is that both the display setting and the Fib calculation setting are recorded. Log interpolation requires positive anchor prices; do not assume enabling a log chart automatically changes an existing drawing’s formula.

Adjust the display, not the math, for each timeframe

The ratios do not need a special scalping set or swing-trading set. What changes is the measured swing, the noise around each level, and how much confirmation you require.

  • On intraday charts, state the session and completed swing rule; measure false touches rather than assuming a universal rate.
  • On daily and weekly charts, define any zone width and closing-price confirmation before testing.
  • For crypto, confirm the exchange and pair because XRPUSD and XRPUSDT candles can print different extremes.
  • For alerts, choose crossing or entering-channel conditions that match the rule instead of treating every touch as a trade.

Turn a drawing into a rule you can test

A Fib line becomes a testable condition only after anchor selection and availability, entry, invalidation, costs and no-trade rules are explicit. A close back above 0.5 after visiting the 0.5–0.618 zone is an example trigger, but it is not a complete strategy by itself.

Pineify can draft Pine Script from a written specification. Inspect the generated formula, pivot confirmation delay and alert behavior in TradingView. An overlay alone is not a strategy backtest; simulated orders need a separately specified strategy.

Worked SPY example

Assume SPY made an illustrative move from a $500 swing low to a $520 swing high. This is a math example, not a current market level.

Bullish retracement price = high - ((high - low) x ratio)

Range = $20
38.2% = $520 - ($20 x 0.382) = $512.36
50% = $520 - ($20 x 0.5) = $510.00
61.8% = $520 - ($20 x 0.618) = $507.64
Using the same convention: -0.272 = 520 - 20 x (-0.272) = 525.44
But +1.272 = 520 - 20 x 1.272 = 494.56

The calculation produces reference prices. It does not tell you whether SPY will reach them or reverse there.

Turn the settings into executable Pine Script

Use a written rule so the generated script has visible inputs, repeatable anchors, and alerts you can inspect.

Create a Pine Script v6 overlay that finds confirmed swing highs and lows with an adjustable pivot depth. Plot 0.382, 0.5, 0.618, and 0.786 retracement levels. Add inputs for line visibility, log-scale calculation, and alert conditions. Do not issue a trade signal unless the confirmation rule is true.
Draft the rule with AI

This page is an information tool, not investment advice. Fibonacci ratios describe possible reaction areas, not guaranteed support, resistance, entries, or returns. Check current market data and test any rule before risking capital.

Common questions