Fibonacci-Only Strategy V2

Fibonacci-Only Strategy V2

This strategy combines Fibonacci retracement levels with pattern recognition and statistical confirmation to identify high-probability trading opportunities across multiple timeframes.
Core Strategy Components:

Fibonacci Levels: Uses key Fibonacci retracement levels (19% and 82.56%) to identify potential reversal zones
Pattern Recognition: Analyzes recent price patterns to find similar historical formations
Statistical Confirmation: Incorporates statistical analysis to validate entry signals
Risk Management: Includes customizable stop loss (fixed or ATR-based) and trailing stop features

Entry Signals:

Long entries occur when price touches or breaks the 19% Fibonacci level with bullish confirmation
Short entries require Fibonacci level interaction, bearish confirmation, and statistical validation
All signals are visually displayed with color-coded markers and dashboard

Trading Method:

When a triangle signal appears, open a position on the next candle
Alternatively, after seeing a signal on a higher timeframe, you can switch to a lower timeframe to find a more precise entry point
Entry signals are clearly marked with visual indicators for easy identification

Risk Management Features:

Adjustable stop loss (percentage-based or ATR-based)
Optional trailing stops for protecting profits
Multiple take-profit levels for strategic position exit

Customization Options:

Timeframe selection (1m to Daily)
Pattern length and similarity threshold adjustment
Statistical period and weight configuration
Risk parameters including stop loss and trailing stop settings

This strategy is particularly well-suited for cryptocurrency markets due to their tendency to respect Fibonacci levels and technical patterns. Crypto's volatility is effectively managed through the customizable stop-loss and trailing-stop mechanisms, making it an ideal tool for traders in digital asset markets.

For optimal performance, this strategy works best on higher timeframes (30m, 1h and above) and is not recommended for low timeframe scalping. The Fibonacci pattern recognition requires sufficient price movement to generate reliable signals, which is more consistently available in medium to higher timeframes.

Users should avoid trading during sideways market conditions, as the strategy performs best during trending markets with clear directional movement. The statistical confirmation component helps filter out some sideways market signals, but it's recommended to manually avoid ranging markets for best results.