Fibonacci Retracement (Pullback)

Setup & Tool

• Fibonacci Retracement: Levels 38.2%, 50%, 61.8%
• Timeframe: H1–D1 for reliable trend phases
• Confirmation: Candlestick patterns (Pin Bar, Engulfing)

Entry

1. Draw the tool from swing low to swing high (uptrend) or the opposite for a downtrend.
2. Long: Price tests 50% or 61.8% level and forms a bullish engulfing or hammer candle.
3. Short: Analogous at retracement levels in a downtrend.

Exit

• Stop-Loss: 5 pips beyond the next Fibonacci level.
• Take-Profit: 100% level (swing high/low) or extensions (127.2%, 161.8%).

Risk Management

• Only take trades with confluence confirmation (e.g. trendline or MA50 alignment).
• Max. 1.5% risk per trade.

• Price movement: Uptrend (bars 0–49), pullback (50–99), continuation of the trend (100–149).
• Fibonacci levels (between swing low at ~100 and swing high at ~110):
  • Fib 38.2% (~103.82)
  • Fib 50% (~105.00)
  • Fib 61.8% (~106.18)
• Entry markers: ▲ Entries at the 61.8% and 50% levels when price tests these zones and reverses with a bullish engulfing/hammer pattern.

Legend

• Yellow line: Closing price
• Dotted lines: Fibonacci levels
• ▲ Entries at retracement levels

This example helps you spot pullbacks at key levels and wait for candlestick confirmations (e.g. hammer, engulfing). Place your stop-loss 5 pips beyond the next Fib level and your take-profit at the swing high or Fibonacci extensions (127.2%, 161.8%).