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Fibonacci Retracement Bounce

Classic TA

Enter the trend at a discount, once the pocket confirms.

how fibonacci retracement bounce works
38.2%50%61.8%impulse ↗ then pullbackbounce in pocket → BUY

What it does

After an impulse, price usually retraces before continuing, and the 50–61.8% 'golden pocket' is where continuation entries cluster. This version measures the last swing, then confirms the bounce: price in the pocket, a reversal candle, RSI recovering, and the setup still valid (price held above the 78.6% invalidation).

How it works

  1. 1Measure the last significant swing and project the 23.6–78.6% fib grid.
  2. 2Confirm 1: prior impulse in the trade direction. Confirm 2: price in the 50–61.8% pocket.
  3. 3Confirm 3: a reversal candle in the zone. Confirm 4: RSI recovering (>40, turning up).
  4. 4Confirm 5: setup valid, price hasn't broken the 78.6% line.