Fibonacci retracement filter

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giulio de meo
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Image 103

Image 104

I was thinking about a new strategy to implement in CP.Maybe also someone can give some advices on how to improve it.

So the strategy works like this. We will draw a trend line on higher time frame like h1.

Then we will go to lower timeframe like M5 and we will try to best catch retracements.


To best catch retracements we will use fibonacci retracements. I will post a picture so it will be more clear for everybody.

Another confirmation of entry that i use when i trade, is volume. When Price approaching Fibonacci line, and there is decreasing volume, is Good confirmation.

PS: I still need to try this strategy and find best way to use it.

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Mikhail Kukhta

Bullish trend: buys are allowed if price >= FiboLevel. Bearish trend: selling is allowed if price >= FiboLevel.

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Mikhail Kukhta

Hello everyone! Andrey, could you add a parameter for opening trades along the trend to the Fibonacci filter?

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Andrey Khatimlianskyi
Quote from drago babnik

I know I'm annoying. Still, I would like an additional option. Buy at price> 100 = Fibo level1 and SELL at price <0 = Fibo level2. Is there any other indicator to replace FIBO (TF D1) to incorporate the strategy below?

The Daily High Low Breakout Strategy

Simple concept:

  • If the price breaks below the low of yesterday’s candle, it may move further low,
  • If the price breaks above the high of yesterday’s candle, it may move further high.
  • The main of this trading strategy is to place two pending orders above or below the yesterday candle.

Rules:

  • When the daily candle of the previous day closes (Fibo 1Day), place a buy stop above the daily high, and a sell stop below the daily low to catch the breakout.
  • Stop-loss should be at 50% of the previous day’s candle.
  • Take profit will be the average price of the last three days’ movement. For example, if the daily candle of the last three days shows the movement of 100 pips, 50 pips, and 100 pips, the total movement would be 250 pips (100+50+100). Therefore, the average price of the last three days would be 83 pips (250/3).

To enter on the previous bar break you don't need any signal )

Disable all signals and set the correct Pending enter:

But we don't have parameters to set SL and TP in % of volatility. If you want to have them, add a new topic, please.

Set file for quick check — CP MT5 Daily High Low Breakout Strategy.set

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drago babnik

I know I'm annoying. Still, I would like an additional option. Buy at price> 100 = Fibo level1 and SELL at price <0 = Fibo level2. Is there any other indicator to replace FIBO (TF D1) to incorporate the strategy below?

The Daily High Low Breakout Strategy

Simple concept:

  • If the price breaks below the low of yesterday’s candle, it may move further low,
  • If the price breaks above the high of yesterday’s candle, it may move further high.
  • The main of this trading strategy is to place two pending orders above or below the yesterday candle.

Rules:

  • When the daily candle of the previous day closes (Fibo 1Day), place a buy stop above the daily high, and a sell stop below the daily low to catch the breakout.
  • Stop-loss should be at 50% of the previous day’s candle.
  • Take profit will be the average price of the last three days’ movement. For example, if the daily candle of the last three days shows the movement of 100 pips, 50 pips, and 100 pips, the total movement would be 250 pips (100+50+100). Therefore, the average price of the last three days would be 83 pips (250/3).

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Andrey Khatimlianskyi
  • Completed

I renamed "Opposite direction" to "On trend reversal". Will be available in 2.25.6.

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Andrey Khatimlianskyi
  • Started
Quote from drago babnik

Hi, 

We have Fibo Type "On opposite direction only", but I don't think it works properly. It opens a new deals regardless of the Fibo level.
- I would expect the Fibo upward trend (0 -> 100) to open SELL only at values above the Fibo level.
- In the case of a downward Fibo trend, BUY should only open at values below the Fibo level.

Why didn't you tell me this before? )

I'll fix it.

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drago babnik
Quote from Andrey Khatimlianskyi

Done in 2.25.4

Hi, 

We have Fibo Type "On opposite direction only", but I don't think it works properly. It opens a new deals regardless of the Fibo level.
- I would expect the Fibo upward trend (0 -> 100) to open SELL only at values above the Fibo level.
- In the case of a downward Fibo trend, BUY should only open at values below the Fibo level.

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Andrey Khatimlianskyi
  • Completed

Done in 2.25.4

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Andrey Khatimlianskyi
  • Started
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Andrey Khatimlianskyi
  • Planned (collecting votes)
Quote from drago babnik

I hope we succeed. Fibo is quite time consuming in set optimization.

We now have Type: 1. On retracement; 2. On retracement + opposite direction. We need another 3. On opposite direction only.

Ok, I will add it.