DSE Fibonacci Retracement Calculator

What is Fibonacci Retracement?

Fibonacci retracement is a popular tool among technical analysts to identify support and resistance levels. It is based on the mathematical sequence discovered by Leonardo Fibonacci, where specific ratios (23.6%, 38.2%, 50%, 61.8%, and 78.6%) often act as psychological barriers for stock prices.

How to use Fibonacci on the DSE?

To use this tool, you need to identify a clear "Swing High" and "Swing Low" on a price chart:

• In an Uptrend: Select the highest point and the lowest point of the recent move. The calculator will show you the levels where the price might pull back (retrace) before continuing its upward journey.
• In a Downtrend: Select the lowest point and the highest point. The tool will show you where the price might "rebound" or find resistance during a relief rally.

The "Golden Pocket" (61.8%)

Among all the ratios, the 61.8% level is considered the most significant. In the Dhaka Stock Exchange, many institutional traders look at this "Golden Ratio" to place their buy orders during a market correction. If a stock drops from Tk 100 to Tk 61.80 and starts bouncing, it is often a sign of strong bullish interest.

Practical Trading Tips:

1. Confluence: Fibonacci works best when it aligns with other indicators. For example, if a 61.8% Fibonacci level also happens to be a previous resistance-turned-support, it is a very high-probability entry point.
2. Multiple Timeframes: Check Fibonacci levels on both Daily and Weekly charts. Levels that appear on both timeframes are much stronger.
3. Don't trade in isolation: Fibonacci levels are not guarantees. Always use stop-losses and check the market volume to confirm if buyers are actually stepping in at these levels.