FIB STRATAGY

Shared by a BacktestingMax trader on 4 Apr 2026, updated 24 May 2026

### How to use Fibonacci Retracement Fibonacci retracements are based on the idea that markets will retrace a predictable portion of a move before continuing in the original direction. 1. **Identify a Trend:** Find a clear, significant swing low and swing high. 2. **Draw the Levels:** - In an **uptrend**, measure from the swing low to the swing high. The tool projects support levels below the high. - In a **downtrend**, measure from the swing high to the swing low. The tool projects resistance levels above the low. 3. **Watch for Reactions:** The horizontal lines (23.6%, 38.2%, 50%, 61.8%, 78.6%) act as potential areas where the price might stall or reverse. *Note: The **61.8%** level is known as the 'Golden Ratio' and, along with the **50%** level, is heavily watched by traders for potential trade entries.*

Entry rules

  1. Enter when the price which is bearish or bullish at near around 0.5 to 0.618 and this is the signal which you have to take a entery

Invalidation

  1. Check the trend wheather the price of the asset is bullish or bearish at 4hour time frame and if you want a double confirmation use support and resistance stratagy in the 4hr timeframe and when use the Fib stratagy on 5min time frame.

Stop loss and take profit

  1. recomended: take 1: 1 or 1: 2 ratio booking.

Author's checklist

  1. Check the trend on 4hour time frame.
  2. Add support and resistance lines in the 4 hours timeframe.
  3. now in the 5min time frame wait for a trend reversal or break of structure.
  4. plant a Fib retrecment and let the price comes around to the 0.5 to 0.618.
  5. Enter the trade , keep the risk % at 1.5 to 2.5.
  6. Keep Tp and Sl to 1:1 or 1:2

Inside the app

Opening this strategy in BacktestingMax shows the full record behind the numbers above, on a free account: every trade with entry, exit, size and P&L plus CSV and Excel export; a bar-by-bar replay of the author's own session on 1-minute history; Monte Carlo projections that reshuffle the trade sequence; the equity curve against buy-and-hold; advanced statistics including Sharpe and Sortino ratios, expectancy, payoff ratio, recovery factor, maximum drawdown and longest time underwater; a day-by-day P&L calendar; and behavioural analysis covering revenge trading, position-size chasing, long/short bias and the hours and days it actually made money.

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Figures come from backtests run by the author inside BacktestingMax. Past performance is not indicative of future results, and nothing here is financial advice.