Fibonacci Retracement Entries from a Rolling Price Range
Summary
This strategy calculates the highest high and lowest low over a rolling 50-day window, then marks retracement levels at 0.236, 0.382, and 0.618 of that range. It enters long when the close crosses above the 0.618 level and exits when it crosses below the 0.236 level. Although the description discusses both rising and falling prices, the supplied rules only open long positions and close them; they do not define a short entry.
The document frames the method as a way to anticipate reversals, but provides no performance results or comparative evidence. Its published settings specify a one-hour BTC/USDT futures test over a short date range, without reporting outcomes. Price can continue through a retracement level, so the notes recommend stops, adaptive levels, additional filters such as volume or moving averages, and testing across longer periods. The rules also leave the exact meaning of “near” a level to the crossover conditions in the implementation.
Key ideas
- The strategy derives three retracement levels from the rolling high-low range.
- A close crossing above the 0.618 level opens a long position.
- A close crossing below the 0.236 level closes the long position.
- The source does not specify a short-entry rule or report backtest results.
- Breakouts through a level can extend losses, so stops and broader testing are suggested.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.