Fibonacci pullback swing trading
This is a daily-chart swing trading strategy that buys pullbacks in uptrends at the Fibonacci 50-61.8% zone, confirmed by a bullish engulfing candle, with a stop below the 78.6% level and targets at the prior swing...
Market Stocks
Style Pullback
Timeframe Swing 4h-1D (1d)
Level Intermediate
Tools Fibonacci
Saved 1 time
Run 0 times Tested
Testing needs market data for this symbol. Past results do not guarantee future results.
The rules
Setup Lane (first to light up) stocks Instrument(s) stocks Primary timeframe daily Trend rule (exact) strong uptrend with a clean impulse leg up
Trigger Pullback definition price pulls back to the 50% to 61.8% Fibonacci zone from swing low to swing high Pullback invalidation (when the setup is dead) price breaks below the 78.6% level
Entry Entry trigger bullish engulfing candle in the 50% to 61.8% zone
Stop Initial stop below the 78.6% level
Exit Profit target (optional) first target prior swing high, second target 1.618 extension
Strengths Uses a clear confluence of trend, Fibonacci retracement, and candlestick confirmation, which can filter out weak setups. Defines a specific entry trigger and stop level, so the trade is mechanical and not discretionary. Risk is capped at 1% per trade, which is a disciplined approach to capital preservation. Risks The pullback may not hold at the 50-61.8% zone and can continue to the 78.6% level or lower, stopping you out before any bounce. A bullish engulfing candle can appear in a weak or failing uptrend, leading to a false signal and a loss. The prior swing high may be far away, and the 1.618 extension is an aggressive target that may not be reached if the trend stalls. Source
A JustWavey pick: a well known public strategy, written out in plain words by the JustWavey team.
Version history
Version Saved Changed boxes 1 2026-10-17 First version
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