Fibonacci Retracement Reversals with Trend and ATR Filters

Summary

The strategy combines Fibonacci retracement levels at 23.6%, 50%, and 78.6% with a trend-strength measure called Trend Strength Over Time. Percentile rankings across timeframes are intended to help confirm the direction and strength of a trend around potential reversal zones. It also uses ATR to set dynamic stops for long and short positions, with configurable trade direction and more elaborate exit handling that includes partial profit taking and position reversals.

The author says the system was tuned for a five-minute crypto perpetual market and describes later additions for partial targets and chart visualization. The document does not provide a detailed entry rule set or quantified performance evidence; it advises testing across market conditions and adapting settings. It also notes limitations in the scripting platform’s handling of stop adjustments and break-even exits, so the described risk controls may not execute exactly as intended.

Key ideas

• Fibonacci retracements at 23.6%, 50%, and 78.6% define potential reversal areas.
• Trend Strength Over Time uses percentile rankings across timeframes to qualify Fibonacci signals.
• ATR-based stops adapt exit distances to changing volatility for long and short trades.
• The strategy includes configurable direction and partial profit-taking features.
• The stated market and timeframe focus is narrow, and no measured results are supplied.

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