Fibonacci Trading

Fibonacci Trading

Fibonacci ratios identify key retracement and extension levels for entries and targets.

Levels

Retracement (Entries)

| Level | Use | | ----- | ------------------------ | | 23.6% | Shallow pullback | | 38.2% | Moderate pullback | | 50.0% | Half retracement | | 61.8% | Golden ratio (key level) | | 78.6% | Deep pullback |

Formula: Retracement = High - Range * Ratio (where Range = High - Low)

Extension (Targets)

| Level | Use | | ------ | ------------------- | | 127.2% | Conservative target | | 161.8% | Standard target | | 200% | Extended target | | 261.8% | Aggressive target |

Formula: Extension = High + Range * Ratio (e.g., 127.2% = High + Range * 0.272)

Drawing Rules

• Bullish: draw from swing low to swing high. Retracements = buy zones, extensions = upside targets.
• Bearish: draw from swing high to swing low. Retracements = sell zones, extensions = downside targets.

Workflow

1. Get candle data around the swing:

`` get_candles_around_date(symbol=, exchange=, interval=, date=) ``

1. Draw Fibonacci retracement on chart (auto-renders all standard levels):

`` draw_chart_analysis(action="create", drawing={ "type": "fib_retracement", "points": [ {"time": , "price": }, {"time": , "price": } ], "options": {"text": "Fib Retracement"} }) ``

1. Check confluence with indicators:

`` get_indicators(indicator_code="rsi", symbol=, exchange=, interval=) get_indicators(indicator_code="macd", symbol=, exchange=, interval=) ``

1. Mark confluence zones where Fib levels overlap with other structures:

`` draw_chart_analysis(action="create", drawing={ "type": "demand", "points": [ {"time": , "price": }, {"time": , "price": } ], "options": {"text": "61.8% + OB"} }) ``

1. Wait for confirmation: rejection candle, LTF structure break, or confluence with S/R at the Fib level

Key Rules

• NEVER draw from unclear or micro swings; use only clear impulsive moves
• NEVER trade Fib levels alone; require confluence (order block, S/R, MA, trendline)
• 61.8% is the primary level; treat it as the strongest retracement zone
• Stop loss beyond 78.6% (conservative) or 100% (aggressive)
• Targets at extension levels: partial at 127.2%, remainder at 161.8%+

Related Skills

• supply-demand-zones — Fib retracements into S/D zones provide high-probability entries
• multi-timeframe-analysis — use Fib across timeframes for precise entry and target levels

Source & license

This open-source skill is cataloged on AgentStack and links to its original source — we do not rehost the code.

• Author: SKE-Labs
• Source: SKE-Labs/agent-trading-skills
• License: Apache-2.0

Install and usage instructions live in the source repository linked above.