{"id":144325,"date":"2025-09-25T12:27:08","date_gmt":"2025-09-25T12:27:08","guid":{"rendered":"https:\/\/ushopwell.com\/ublog\/script_algo-fibo-correction-strategy-algotrading-trading-tradingbot-crypto-tradingstrategy\/"},"modified":"2025-09-25T12:27:08","modified_gmt":"2025-09-25T12:27:08","slug":"script_algo-fibo-correction-strategy-algotrading-trading-tradingbot-crypto-tradingstrategy","status":"publish","type":"post","link":"https:\/\/ushopwell.com\/ublog\/script_algo-fibo-correction-strategy-algotrading-trading-tradingbot-crypto-tradingstrategy\/","title":{"rendered":"Script_algo &#8211; Fibo correction Strategy #algotrading #trading #tradingbot  #crypto #tradingstrategy"},"content":{"rendered":"<div class=\"youtubomatic-video-container\"><iframe loading=\"lazy\" width=\"580\" height=\"380\" src=\"https:\/\/www.youtube.com\/embed\/y8SueY3YQ14?autoplay=1&#038;controls=1&#038;hl=en\" frameborder=\"0\" allowfullscreen><\/iframe><\/div>\n<p>\ud83d\udd39 Core ConceptThe strategy is built on combining Fibonacci retracement levels, candlestick pattern confirmation, and trend filtering for trade selection. It performs well on the 1-hour timeframe across many cryptocurrency pairs. Particularly on LINKUSDT over the past year and a half, despite the not very optimal 1:1 risk\/reward ratio.The logic is simple: after a strong impulse move, the price often retraces to key Fibonacci levels (specifically, the 61.8% level). If a confirming candlestick (pattern) appears at this moment, the strategy looks for an entry in the direction of the main trend.\ud83d\udd39 Indicators Used in the StrategyATR (Average True Range) \u2014 Used to calculate the stop-loss and take-profit levels.EMA (9 and 21) \u2014 Additional moving averages for assessing the direction of movement (not directly used in entry conditions, but the logic can be expanded to include them).SMA (Trend Filter, 20 by default) \u2014 The trend direction filter. Trades are only opened in its direction.Fibonacci Levels \u2014 The 61.8% retracement level is calculated based on the high and low of the previous candle.\ud83d\udd39 Entry Conditions\ud83d\udfe2 Long (Buy):Previous Candle:Must be green (close higher than open).Must have a body not smaller than a specified minimum.The upper wick must not exceed 30% of the body size.\u2192 This filters out &#8220;weak&#8221; or &#8220;indecisive&#8221; candles.Current Candle:Price touches or breaches the Fibonacci 61.8% retracement level from the previous range.Closes above this level.Closes above the Trend Filter (SMA) line.A position is opened only if there are no other open trades at the moment.\ud83d\udd34 Short (Sell):Previous Candle:Must be red (close lower than open).Must have a body not smaller than a specified minimum.The lower wick must not exceed 30% of the body size.Current Candle:Price touches or breaches the Fibonacci 61.8% retracement level from the previous range.Closes below this level.Closes below the Trend Filter (SMA) line.A trade is opened only if there are no other open positions.\ud83d\udd39 Risk ManagementStop-Loss = ATR \u00d7 multiplier (default is 5).Take-Profit = ATR \u00d7 the same multiplier.Thus, the default risk\/reward ratio is 1:1, but it can be easily adjusted by changing the coefficient. Although, strangely enough, this ratio has shown the best results on some assets on the 1-hour timeframe.\ud83d\udd39 Chart VisualizationFibonacci level for Long \u2014 Green line with circles.Fibonacci level for Short \u2014 Red line with circles.Trend Filter line (SMA) \u2014 Blue.<\/p>\n<p>Backtest results are shown on the picture above.\ud83d\udd39 Strengths of the Strategy\u2705 Utilizes a proven market pattern \u2014 retracement to the 61.8% level.\u2705 Further filters entries using trend and candlestick patterns.\u2705 Simple, transparent logic that is easy to expand (e.g., adding other Fib levels, an EMA filter, etc.).\ud83d\udd39 Limitations\u26a0\ufe0f Performs better in trending markets; can generate false signals during ranging (sideways) conditions.\u26a0\ufe0f The fixed 1:1 risk\/reward ratio is not always optimal and could be refined.\u26a0\ufe0f Performance depends on the selected timeframe and ATR parameters.<\/p>\n<p>\u26a0\ufe0f Not financial advice. Pay close attention to risk management to avoid blowing your account. The strategy is not repainting \u2014 I have personally verified it through real testing \u2014 but it may not necessarily replicate the same results in the future, as the market is constantly changing. Test it, profit, and good luck to everyone!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\ud83d\udd39 Core ConceptThe strategy is built on combining Fibonacci retracement levels, candlestick pattern confirmation, and trend filtering for trade selection. It performs well on the 1-hour timeframe across many cryptocurrency pairs. Particularly on LINKUSDT over the past year and a half, despite the not very optimal 1:1 risk\/reward ratio.The logic is simple: after a strong impulse move, the price often retraces to key Fibonacci levels (specifically, the 61.8% level). If&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","tve_updated_post":"","tve_custom_css":"","tve_user_custom_css":"","tve_globals":{},"tcb2_ready":0,"tcb_editor_enabled":0,"tve_landing_page":"","_tve_header":"","_tve_footer":""},"categories":[1],"tags":[],"class_list":["post-144325","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Script_algo - Fibo correction Strategy #algotrading #trading #tradingbot #crypto #tradingstrategy - UshopWell.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ushopwell.com\/ublog\/script_algo-fibo-correction-strategy-algotrading-trading-tradingbot-crypto-tradingstrategy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Script_algo - Fibo correction Strategy #algotrading #trading #tradingbot #crypto #tradingstrategy - UshopWell.com\" \/>\n<meta property=\"og:description\" content=\"\ud83d\udd39 Core ConceptThe strategy is built on combining Fibonacci retracement levels, candlestick pattern confirmation, and trend filtering for trade selection. It performs well on the 1-hour timeframe across many cryptocurrency pairs. Particularly on LINKUSDT over the past year and a half, despite the not very optimal 1:1 risk\/reward ratio.The logic is simple: after a strong impulse move, the price often retraces to key Fibonacci levels (specifically, the 61.8% level). 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It performs well on the 1-hour timeframe across many cryptocurrency pairs. Particularly on LINKUSDT over the past year and a half, despite the not very optimal 1:1 risk\/reward ratio.The logic is simple: after a strong impulse move, the price often retraces to key Fibonacci levels (specifically, the 61.8% level). 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