Trading Pullbacks to the Midpoint of a Higher-Timeframe Fib Swing

Summary

This strategy uses a higher-timeframe candle pattern to establish directional bias, then maps a swing on a lower timeframe. It draws a Fibonacci range from the swing’s start to its extreme and looks for a pullback to the midpoint. Stops are placed beyond the swing origin or, for some entry modes, beyond the post-touch pullback; targets can be set near the swing endpoint or by a risk multiple. Optional confirmation uses a one-minute market-structure shift and fair-value gap, while configurable failed-two patterns can gate bias or swing formation.

The script’s version notes describe refinements to swing anchoring, locking levels after a touch, session limits, daily trade caps, stop constraints, and reward-to-risk filters. It reports backtest figures for a specified instrument, period, and default configuration, including a separate unseen-year sample, but says the results assume no slippage. This is a strategy implementation and developer-reported test, not independent validation; fills on midpoint touches are modeled at bar close, and outcomes depend on settings, market, and execution assumptions.

Key ideas

• A higher-timeframe candle signature sets bias before a lower-timeframe swing is mapped.
• The core setup enters on a retracement to the swing midpoint, with optional structure-shift and gap confirmation.
• Stops and targets are configurable around the swing, and filters can reject small or poorly balanced setups.
• The notes report sample backtests for one instrument, including a later period, without slippage.
• Midpoint-touch entries are filled at bar close in this strategy version, which may differ from live fills.

Tags

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