Target, Fib, Return (TFR)

Shared by a BacktestingMax trader on 18 Oct 2026

Mark the swing high or low you are targeting first. Then pull the fib across the move to set your entry zone: the discount for buys, the premium for sells. Wait for price to return into that zone before taking the continuation toward your target, with the stop beyond the swing that anchors the fib.

Entry rules

  1. Displacement candle leaving a new FVG on the way down/up
  2. Retest of that new FVG or order block, then continuation
  3. Small CHoCH on M5 or M15 (break of the last higher low/lower high)
  4. Sweep of a minor high/low inside the zone, then a rejection.
  5. Bearish/ bullish engulfing or strong rejection wick at the zone
  6. Close back below the zone’s lower/higehr edge

Invalidation

  1. Price closes beyond the fib anchor swing
  2. Price retraces past 0.786 before confirmation
  3. Bias structure breaks
  4. Target is taken out before entry
  5. Strong close through the zone with no rejection

Stop loss and take profit

  1. sl at the swing high/low that anchors the fib (Never inside the zone)
  2. Tp at the swing low/high that anchors the fib (Never inside the zone)
  3. Minimum 1:2 RR, or skip the trade
  4. Move SL to breakeven after price breaks the first internal low (sells) or high (buys)
  5. Close fully at target, no moving it further out
  6. Risk 1 to 2% per trade

Author's checklist

  1. Swing high or low identified
  2. Liquidity sits beyond it
  3. Direction chosen: sell (target low) or buy (target high)
  4. CHoCH or BOS in my direction
  5. Displacement candle present
  6. Bias not broken since the shift
  7. Price inside the 0.6 to 0.7 zone
  8. Sweep of a minor high or low, then rejection (5mn TF)
  9. Supply or demand zone, order block, FVG, or flipped level inside the zone
  10. Under 3 trades today, and not 2 losses in a row

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.