TradingView is one of the most popular platforms for charting and analysis, especially among retail traders. One of its built-in tools is Fibonacci retracement, which helps identify key pullback levels. In this tutorial, you’ll learn how to draw Fibonacci retracement on TradingView the right way—step by step.
✅ Step 1: Open a Chart on TradingView
- Visit tradingview.com
- Choose any asset: stock, forex pair, crypto, index, etc.
- Select your preferred timeframe (1H, 4H, Daily, etc.)
✅ Step 2: Select the Fibonacci Retracement Tool
- On the left toolbar, click the “Trend Line Tools” icon (the diagonal line).
- From the dropdown, select “Fibonacci Retracement”.
Alternatively: Press / on your keyboard and search “Fibonacci Retracement” to find it instantly.
✅ Step 3: Draw the Retracement
- In an uptrend: Click the swing low, then drag to the swing high
- In a downtrend: Click the swing high, then drag to the swing low
This will plot multiple horizontal levels automatically.
✅ Step 4: Customize Your Settings (Optional)
- Click the Fibonacci line, then the gear icon (⚙️) to open settings.
- In the “Fib Levels” tab, you can:
- Add or remove levels (e.g., 23.6%, 38.2%, 50%, 61.8%, 78.6%)
- Show price next to levels
- Adjust line thickness or color for clarity
- Save your configuration by clicking “Template” → Save as Default
✅ Step 5: Analyze the Levels
Use Fibonacci levels to:
- Watch for price reactions near 38.2%, 50%, or 61.8%
- Look for candlestick confirmations (hammer, engulfing, etc.)
- Combine with RSI, MACD, or trendlines for added confirmation
- Set stop-loss below/above the retracement zone
- Plan profit targets using extensions like 127.2% or 161.8%
Example:
Price moves from $1,000 to $1,200.
Draw from low to high:
- 38.2% = $1,123.60
- 50.0% = $1,100.00
- 61.8% = $1,076.40
If price retraces to the 50% level and forms a bullish engulfing candle, it could signal a buying opportunity.
Final Thoughts
Drawing Fibonacci retracement on TradingView is quick and simple—but to use it effectively, you must pair it with trend direction and confirmation tools. Always look for price behavior at key levels and manage your risk accordingly.
Once you save your settings, it becomes a powerful tool you can apply instantly to any chart.
✅ FAQs
1. Can I use Fibonacci on TradingView for free?
Yes, the Fibonacci retracement tool is available on free accounts.
2. Should I draw Fibonacci on closing prices or wicks?
Use wicks for more accurate high/low levels.
3. Can I use Fibonacci on mobile TradingView?
Yes. The mobile app also supports drawing tools.
4. What’s the best timeframe for drawing Fibonacci levels?
1H and higher offer the most reliable results, but it works on all timeframes.
5. Can I save my customized Fibonacci settings?
Yes. After customizing, click “Template” and save it for future use.
