Fibonacci Strategy Trading Plan

📈 Fibonacci Strategy Trading Plan

Using Higher Timeframe Confluence

🔍 1. Identify the Market Trend (Higher Timeframe)

  • Use the 4H or Daily timeframe to determine the overall trend.
  • Spot breaks of previous highs (uptrend) or lows (downtrend).

🧭 2. Mark the Break of Structure & Wait for Retest

Look to the left for the last major structure break and draw a zone around that area:

  • Demand zone (break of highs in an uptrend).
  • Supply zone (break of lows in a downtrend).

✅ Strategy: We use a break-and-retest method:

  • Wait for the zone to be broken (market structure shift).
  • Wait for price to retest the same zone.
  • Enter only if you also have:
    1. Zone aligns with Fibonacci 50% or 61.8% level.
    2. UTBOT confirmation (candle close at zone).

🔄 When a demand zone is broken, it can become a new supply zone, and vice versa. This is called a flip zone.

📐 3. Apply the Fibonacci Tool

  • In an uptrend: draw from swing low → swing high.
  • In a downtrend: draw from swing high → swing low.
  • Focus on 50% and 61.8% retracement levels.

🎯 4. Look for Confluence

  • Check if the retested zone aligns with the Fib 50% or 61.8% level.
  • If yes, mark it as a strong entry zone.
  • This gives double confluence.

🚦 5. Confirm Entry with UTBOT

  • Switch to lower timeframe (e.g. H1) for entry.
  • Wait for UTBOT signal + candle close at the zone.
  • Only enter when all 3 confluences align.

🛡️ 6. Set Your Stop Loss

  • Place SL just below demand (for buys) or above supply (for sells).
  • Risk max 1–2% of your capital per trade.

💰 7. Set Your Take Profit Levels

Use Fibonacci Extensions:

TP Fib Level Description
TP1 0% Previous swing high/low
TP2 -0.27% Aggressive short-term target
TP3 -0.68% Extended long-term target
  • Take partials at TP1 & TP2.
  • Let TP3 run with a trailing stop.

📊 8. Manage Your Risk

⚠️

Risk max 2% per trade.

🧮

Use a lot size calculator.

📓

Maintain a trading journal for review.