Previous-Day Fibonacci Levels for Conditional Long Entries

Summary

This strategy calculates Fibonacci retracement levels from the previous day’s high and low, then uses the current bar’s opening price to define three possible long-entry conditions. The conditions involve price zones around the 23.6%, 50%, and 61.8% levels, with one condition constrained to a brief morning window and another requiring price below the previous day’s low. Each scenario is paired with a different Fibonacci-based stop level. The published configuration uses hourly BTC-USDT futures data for about a month.

The document presents these levels as support and resistance references, but supplies no performance statistics or evidence that the approach is profitable. Its own risk discussion notes that Fibonacci levels may be unreliable across market conditions, a fixed time window can exclude other opportunities, and stops may be vulnerable to sharp moves. It also identifies the lack of a broad trend filter and suggests testing trend, volatility, volume, and timing filters, as well as adding a profit target. The code describes long conditions only, so the broader trend-following label does not correspond to a symmetric long-and-short implementation.

Key ideas

• Previous-day high and low prices are used to calculate six Fibonacci retracement levels.
• Three opening-price conditions define long entries, including a restricted time-window case.
• Each entry scenario is assigned a different stop level based on the retracement range.
• The published backtest configuration specifies hourly BTC-USDT futures data but reports no outcomes.
• The source contains long-entry logic only and does not define a profit target.

Tags

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