Strategies / Pattern / Fibonacci Retracement Candle Reversal

Fibonacci Retracement Candle Reversal

This idea trades a rebound after a candle pulls back to the 0.618 level of the prior bar's range, in the direction of the 20-period average. Each trade has a stop and target both 5 times the 14-period ATR away.

PatternLong & shortIntradayDAX 4030 min

n/aProfit factor

14,040Net profit EUR

51.71%Win rate

2,363Trades

-6,138Max drawdown

5.94Avg trade

Best run of 6. DAX 40, 30 min, spread 3, from run sweeps:2026-10-12-DAX40-30m-opt.tsv:7.

Entry rules, long

The prior bar was a bullish candle whose upper wick is at most 0.3 times its body.
The close is above the 20-period simple moving average.

Entry rules, short

The prior bar was a bearish candle whose lower wick is at most 0.3 times its body.
The close is below the 20-period simple moving average.

Exit rules

No other exit is coded.

Test conditions

Period	Up to 2026-10-12
Instrument	DAX 40, 30 minutes
Spread	3 points
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-10-12

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
DAX 40Best run	30 min	n/a	2,363	51.71	14,040 EUR	-6,138
Dow Jones	Daily	n/a	156	54.49	18,364 EUR	-7,500
Nasdaq 100	4 hours	n/a	432	52.08	13,409 EUR	-4,813
US Crude Oil	4 hours	n/a	283	54.06	10,027 EUR	-4,641
US Crude Oil	30 min	n/a	2,027	50.17	4,832 EUR	-4,379
S&P 500	Daily	n/a	167	54.49	2,480 EUR	-1,552

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Fibonacci Retracement Candle Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: 30 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

myAtr = AverageTrueRange[14](close)
trend = Average[20](close)
body = abs(close - open)
upper = high - max(open, close)
lower = min(open, close) - low
minbody = close * 0.0022 / 100

23 more lines: the entry and exit rules.

Setup

How to load it

Copy the code with the copy button on the code block.
In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

ATRSMA

Read this firstKnown weaknesses2 points

No profit factor is available, because only sweep results exist for this strategy.
Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Fibonacci Retracement Candle Reversal in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 6 market and timeframe combinations. The best run by trade count was DAX 40, 30 minutes, with 2,363 trades.

How large was the drawdown?

The best run had a maximum drawdown of 6,138 EUR at the tested position size, against a net result of 14,040 EUR.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

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Heikin Ashi Color Flip

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Breakout Reversal

Also a pattern strategy.

n/a PF · 459 trades

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Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.com Stats Docs