Fibonacci Retracement Entries with Moving Average Filters and Fixed Risk

Summary

This script describes a rule-based approach that derives Fibonacci entry levels from the highest high and lowest low over a configurable swing lookback. It seeks a long entry when the close crosses below the calculated retracement level while price is above both a simple and an exponential moving average. The short condition reverses those directions. Trade risk is set in ticks, with a configurable reward-to-risk multiple and optional break-even trigger; the visible code also draws trade levels anchored to the entry bar.

The excerpt provides implementation details and defaults, including a 20-bar lookback, a 0.618 retracement, moving averages of 290 and 200 bars, and a 2:1 reward-to-risk setting. It does not include performance results, a market or timeframe specification, or the remainder of the script, so the complete exit and reporting behavior cannot be assessed. The moving swing range can change as new highs or lows enter the lookback, and fixed tick stops may not scale consistently across instruments or volatility regimes. These rules need instrument-specific evaluation.

Key ideas

• The strategy calculates retracement levels from the recent high-low range.
• Long and short entries require price to cross the relevant level and satisfy moving average filters.
• Stops use a fixed tick distance, while targets use a configurable reward-to-risk multiple.
• An optional break-even rule can activate after a specified reward-to-risk threshold.
• The excerpt offers no performance evidence and does not show the entire script.

Tags

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