Trend and Candle Confirmations with Fibonacci Targets

Summary

This strategy combines an EMA trend filter with swing points, fair value gaps, simple order block definitions, and engulfing candles. The code enters long when the trend is upward and bullish gap, candle, and order block conditions coincide; short entries use the corresponding bearish conditions. It places a stop at a recent pivot low or high and calculates a profit target using a 1.618 extension of the entry-to-pivot distance. Position size is configured as a percentage of account equity.

The document supplies code and backtest settings for ETH/USDT futures over a stated date range, but reports no results. It warns that stacking conditions may make signals scarce, pivot-based stops can be distant, EMA trend changes may lag, and parameters may be overfit. It also identifies unused ATR and risk-to-reward settings as possible areas for revision. The code’s entry conditions do not require the separate engulfing condition mentioned in its prose; the actual conditions combine trend, gap, and candle-direction tests. Independent code review and out-of-sample testing are needed before drawing conclusions.

Key ideas

• EMA alignment defines the trend direction for long and short setups.
• The code combines gap and candle-direction conditions with market structure pivots for entries and stops.
• Profit targets extend the entry-to-pivot distance by a 1.618 factor.
• The code’s actual entry rules differ from the prose description of engulfing confirmation.
• The stated backtest configuration includes no performance results, and parameter overfitting is a stated risk.

Tags

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