Fibonacci-Retracement-Levels
Horizontal levels (23.6 / 38.2 / 50 / 61.8 / 78.6%) of a preceding impulse move where pullbacks often turn. Basis of Botty's FibDiv entry (Pifagor).
What is Fibonacci retracement?
From the Fibonacci sequence (0, 1, 1, 2, 3, 5, 8, …) come ratios whose limit is the golden ratio (≈ 0.618). In trading, the levels of an impulse move are used as potential reversal zones for corrections (retracements):
| Level | Origin |
|---|---|
| 23.6% | F(n)/F(n+3) |
| 38.2% | F(n)/F(n+2) |
| 50% | (not a Fib, but conventional) |
| 61.8% | F(n)/F(n+1) — the golden ratio |
| 78.6% | √0.618 |
The logic is primarily self-fulfilling: enough market participants place orders at these levels that they act as support/resistance — a genuine statistical edge is disputed.
How Botty uses Fibonacci
- Entry
fibdiv(strategies/conditions/entries.py, Pifagor's core strategy): detects the last impulse via zigzag, computes the Fib levels and fires when price runs back into the entry zone (default 0.618). The stop sits at the 0.8 level (zone floor). - Parameters:
fibdiv_entry_level(0.618),fibdiv_stop_level(0.8).
Context
- Closely related to Elliott Wave theory, which uses Fib ratios for wave targets.
- Pullback logic in a trend → strongest in clear trend phases, weak in ranges.