Structure Breakout Entries with Fibonacci or Volume-Based Pullbacks

Summary

This long-only strategy tracks recent structure highs and lows, then looks for a low sweep followed by recovery and a close above the previously recorded structure high. After that breakout, it places a limit entry at either a chosen Fibonacci retracement of the move or a price derived from accumulated volume, described by the author as a value-area-low approach. The stop is based on the lowest price recorded during the sweep and pullback sequence; position quantity is set from a chosen fraction of strategy equity at risk.

The strategy sets a reward target as a multiple of entry-to-stop risk, can move the stop to breakeven after price advances toward the target, and cancels unfilled limit orders after a configured number of bars. The author reports testing the idea and says preferred retracement levels vary by market, but supplies no verifiable performance statistics. The volume-based calculation is a simplified custom routine, and the claimed improvements are not independently substantiated in the document.

Key ideas

• A low sweep and recovery precede a close above the tracked structure high.
• Entries use either a Fibonacci retracement or a custom volume-based price level.
• The stop is set using the lowest low tracked during the setup, and sizing is based on a risk percentage.
• The script supports a reward-to-risk target, optional breakeven stop movement, and expiration of unfilled orders.
• The author describes personal testing but provides no quantitative performance evidence.

Tags

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