Fibonacci Pivot Rejections with Risk-Based Position Sizing

Summary

This script derives a central pivot and Fibonacci-scaled support and resistance levels from daily high, low, and close values. It looks for rejection moves at selected levels: longs when price recovers above support, and shorts when price falls back below resistance. Some first-level setups are restricted to Mondays and require the bar's open to be near the pivot level; outer-level setups use a similar rejection pattern without that weekday filter. Entries are assigned to the signal bar's high for buys and low for sells, with stop and target levels mapped to nearby pivots.

The visible code specifies a stop offset in pips, a per-trade risk input, a daily loss limit, and a cap on daily positions, but the source ends partway through position sizing. The calculation uses current daily values with lookahead enabled, creating a serious risk of future-data leakage in historical tests. The document gives no results or market-specific validation, so the strategy's performance cannot be assessed from the supplied material.

Key ideas

• Daily high, low, and close values define a central pivot and Fibonacci-based support and resistance levels.
• Long and short entries follow rejection moves at selected support and resistance levels.
• First-level setups have a Monday filter and require the bar open to be near the relevant level.
• Stops and targets are placed relative to pivot levels, with an additional pip offset for the stop.
• The visible source is incomplete and uses lookahead on daily data, so historical signals may be contaminated by future information.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.