Fibonacci Retracement Levels from Daily Candles and Candle Arrays

Summary

The article introduces Fibonacci retracement as a charting method for marking potential support or resistance after a price move. It describes common retracement levels and the usual drawing direction: low to high after an uptrend and high to low after a downtrend. Its proposed MQL5 system has two ways to set the reference range: the previous daily candle, or a chosen array of candles in any timeframe.

For the daily method, candle direction determines whether the system treats the range as bullish or bearish. For the array method, it compares the first candle’s open with the last candle’s close and uses the range’s high and low to calculate levels. A user-selected retracement level, illustrated with 38.2%, can serve as a buy or sell entry price. The examples show calculated levels and chart output, but the supplied text gives no performance study or evidence that these entries are profitable. It recommends combining retracements with other analysis and testing the rules before live use.

Key ideas

• Fibonacci retracement levels are used as possible support or resistance during corrections in a trend.
• The system derives retracement levels either from the last daily candle or a selected candle array.
• Candle direction determines whether the range is treated as bullish or bearish.
• A user-selected retracement level can be used as a buy or sell entry price.
• The article gives no performance evidence and recommends combining tools and testing the strategy.

Tags

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