Trading Confluence Across Multiple Fibonacci Retracement Grids

Summary

This strategy calculates Fibonacci retracement levels from three independent rolling high-low ranges, using short, medium, and long lookbacks. It tracks five retracement levels per range and counts how many lie within a configurable percentage of the current close. A trade is considered when the count meets a minimum threshold, with optional EMA direction and RSI momentum filters, and controls for long-only, short-only, or both directions.

The strategy uses a fixed percentage stop and a take-profit distance set as a multiple of that stop, and can restrict trading to one open position. Its description characterizes the approach as mean reversion around confluence zones and cautions that it may struggle in strong trends with few pullbacks. It offers tuning suggestions but no quantified test results; historical backtests also may not capture slippage, liquidity gaps, or broker and exchange execution differences.

Key ideas

• The script compares price with five Fibonacci retracement levels from each of three rolling ranges.
• A configurable tolerance and minimum count determine when levels form a qualifying confluence.
• EMA and RSI filters, trade direction, and one-position-at-a-time behavior are configurable.
• Stops use a fixed percentage, while profit targets scale that distance by a chosen reward-to-risk multiple.
• The document warns that the approach can underperform in strong trends and provides no quantified performance evidence.

Tags

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