The Fibonacci rule fires when price is near a retracement level from the recent swing.
For the indicator formula, see Fibonacci retracement — Formula.
Signals
When price is within about 0.5% of the active level:
- Retracement ratio ≥ 0.5 → Buy (support-style)
- Retracement ratio < 0.5 → Sell (resistance-style)
Default parameters
| Parameter | Default |
|---|---|
| lookback | 20 |
| entryLevel | 0.618 |
| exitLevel | 0.382 |
entryLevel applies to entry and reversal sections; exitLevel applies to exit section.
Supported levels: 0.236, 0.382, 0.5, 0.618, 0.786.
Where to use it
Entry, increase, reversal, exit, and directional filters. Counter-trend classified.
Tips
- lookback should cover a meaningful swing on your timeframe.
- Combine with trend rules so you buy pullbacks in uptrends, not every touch in a dump.
Example
lookback 20, entryLevel 0.618, exitLevel 0.382 on ETH/USDT 1h. Swing $3,000 → $3,500, 0.618 retracement ≈ $3,191. Close $3,188 → near level → buy (support-style). Use exitLevel in the exit section to target shallower 0.382 for take-profit logic.