Choose a definition before moving the anchors
TradingView labels the drive ends 1, 2 and 3, with retracement ends A and C. Its drawing guide describes 0.618 or 0.786 retracements and 1.272 or 1.618 extensions, with shallower retracements possible in strong trends. It calls for similar durations between the two retracements and between drives 2 and 3, and advises rejecting gapped or poorly symmetrical formations.
- This page uses an illustrative TD-1 specification: both retracements target 0.618 and both extensions target 1.272. It excludes the other published variants so its calculations have one reproducible meaning.
- TD-1 accepts absolute ratio error of at most 0.020. Its inclusive bands are 0.598 to 0.638 and 1.252 to 1.292. These are chosen research thresholds, not TradingView defaults or optimized settings.
- Use one instrument, timeframe, session setting and price scale. Calculate with numerical price differences; the diagonal length of a drawn line is not a Fibonacci ratio.