Combining Order Blocks with Fibonacci Retracements for Entries
Summary
The article outlines a rules-based approach that combines order block zones with Fibonacci retracements. A bullish setup is defined by a bearish candle followed by an engulfing bullish candle and further bullish movement; a bearish setup reverses those conditions. Rather than entering at formation, the method waits for price to return to the identified zone. It then uses swing highs and lows to draw a Fibonacci retracement and requires the order block to align with the 61.8% level before taking a trade.
The article describes an Expert Advisor implementation that detects swing points, marks order blocks on the chart, and sets entry, stop-loss, and take-profit levels. It provides rules and code discussion but no reported backtest, live results, or evidence that the zones represent institutional orders. Its claims about high-probability entries are therefore not demonstrated in the supplied text, and the approach depends on subjective chart concepts translated into specific pattern rules.
Key ideas
- A bullish order block is defined as a bearish candle engulfed by a bullish candle and followed by further bullish candles.
- A bearish order block applies the inverse candle pattern and follow-through.
- The method waits for price to retest the identified zone before considering an entry.
- Fibonacci retracement is used to require alignment of the zone with the 61.8% level.
- The article describes an automated implementation but supplies no performance evidence for the strategy.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.