Trading 50% Fibonacci Pullbacks After Higher-Timeframe Signals

Summary

This strategy uses a higher-timeframe candle pattern to establish directional bias, then maps a swing on a lower timeframe and looks for an entry when price retraces to its 50% level. The documented model places a stop beyond the swing’s starting point and targets either the opposite swing endpoint or a one-to-one reward-to-risk distance. The script is presented as a backtesting counterpart to a separate trading bot, with orders filled at bar close; therefore, a touch-based entry in the backtest may not fill at the Fibonacci level itself. Later versions add confirmation options using a one-minute market-structure shift and a fair value gap.

The document describes the model and settings history, but the supplied excerpt is incomplete and contains no backtest performance results. Its implementation details and defaults changed across versions, so results depend on the chosen settings, instrument, and execution assumptions. The stated rules provide a framework for testing multi-timeframe pullback entries, not proof that the pattern is profitable.

Key ideas

• A higher-timeframe candle pattern sets the direction for a lower-timeframe swing setup.
• The basic entry seeks a retracement to the swing’s 50% Fibonacci level.
• Stops are placed beyond the swing origin, with targets tied to the swing or a stated reward-to-risk rule.
• The backtest fills orders at bar close, which can differ from filling at the Fibonacci touch.
• The source excerpt is incomplete and gives no performance results.

Tags

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