What it is
The ratios come from the Fibonacci sequence: 61.8% is the golden ratio, 38.2% and 23.6% follow from it, and 50% is added because traders watch halfway. There is no proof the market obeys these numbers; they matter mainly because many traders watch the same levels.
WickSpeak finds the highest high and lowest low of the last 120 candles. If the low came first, the swing is up and levels are measured down from the high; if the high came first, the swing is down. Optional extensions at 127.2%, 161.8% and 200% project where the move might run if the swing breaks.
How it is calculated
Find the swing: the highest high and lowest low in the last 120 candles, and which came first. Range = high minus low. For an up swing, each level = high minus range x ratio (0.236, 0.382, 0.5, 0.618, 0.786); 0% is the high and 100% is the low. For a down swing, each level = low + range x ratio. Extensions use 1.272, 1.618 and 2.0 of the range.
Settings
| Setting | Default | Range | What it changes |
|---|---|---|---|
| swing lookback | 120 | 10 to 1000 | How many candles back the highest high and lowest low are searched. Smaller picks recent swings; larger picks the bigger move. |
| extensions | off | off, on | Adds the 127.2%, 161.8% and 200% extension levels. |
| shading | on | on, off | Shades the areas between levels. Display only. |
How to read it
How to trade it
- 1
On a 1 hour gold chart in an uptrend, let the indicator draw the levels on the latest up swing.
- 2
Entry trigger: price pulls back into the 50% to 61.8% area and a candle closes bullish off it (for example a hammer or a close above the previous candle's high).
- 3
Stop below 78.6%, or below the rejection candle's low if that is further.
- 4
Target the swing high (0%) first, then the 127.2% extension.
- 5
On US30, the same rules work on a 15 minute chart with a smaller lookback.
A close below the 78.6% level cancels the pullback long; a close beyond 100% ends the trend view entirely.
On WickSpeak, the Fibonacci retracement writes a plain-English reading on the live candle: which level price is at, how many points to the next one, how to trade it and what would prove it wrong. The swing is found automatically, so the levels move to the new swing as the chart develops.
Best markets and timeframes
Works on trending markets: gold, US30, NAS100 and forex, on 15 minute to daily charts. In ranges the swings are small and the levels sit close together.
Common mistakes
- Buying at a level without waiting for a candle that shows it is holding.
- Drawing levels on a swing that is too small to matter.
- Putting the stop exactly on a level, where price often probes before turning.
Works well with
Questions traders ask
What are the main Fibonacci retracement levels?
23.6%, 38.2%, 50%, 61.8% and 78.6%. 50% is not a Fibonacci ratio but is included because traders watch halfway.
What is the golden zone in Fibonacci?
The area between 50% and 61.8%, where many traders look for a pullback to end.
Is Fibonacci retracement reliable?
It has no built in edge on its own; levels matter because many traders watch them. It works best combined with trend direction and a candle that confirms the level is holding.
How do you draw Fibonacci on an uptrend?
From the swing low to the swing high. The retracement levels then sit below the high. WickSpeak draws them automatically from the biggest swing in the lookback.