Previous-Day Range Breakout with Fibonacci Stops and Targets

Summary

This indicator describes a daily breakout approach based on the previous session’s high and low. A close above or below those boundaries is treated as a possible entry signal, with separate Fibonacci-based stop and profit levels projected from the prior day’s range. The stated long and short parameter examples use different retracement and expansion ratios, and users can adjust the levels and chart display settings.

The method is presented as a visual aid for a one-candle or daily breakout strategy, with the prior day’s volatility providing the reference range. The document supplies no backtest, trade records, market-specific guidance, or evidence that the chosen ratios identify reliable exhaustion points. It also does not explain position sizing, execution rules, or how to handle gaps and false breakouts, so the indicator’s plotted levels alone do not establish strategy performance.

Key ideas

• The prior session’s high and low define the daily breakout trigger levels.
• The indicator uses Fibonacci retracement and expansion ratios to place stop and target levels.
• A candle close outside the prior range is described as a potential entry signal.
• Users can adjust the ratios and visual settings, including how many past sessions to display.
• The document provides no performance evidence or complete execution and risk-management rules.

Tags

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