What the patterns look like
Made-up prices. Shape example only, not a detected signal.
Read left to right. The line charts join selected turning points; they leave out the full candle history and volume.
Fibonacci support: significant main move
- Example price
- 38.2%: 124.72
- 50%: 120
- 61.8%: 115.28
- Use the significant main move. Smaller swings within it do not change the two anchors.
- The 38.2% and 61.8% levels have equal priority. The 50% level has less weight.
- A touch needs a confirmed reaction before it can become a signal.
- Main origin
- 100
- Main end
- 140
Made-up prices. Shape example only, not a detected signal.
Fibonacci resistance: significant main move
- Example price
- 38.2%: 115.28
- 50%: 120
- 61.8%: 124.72
- Use the significant main move. Smaller swings within it do not change the two anchors.
- The 38.2% and 61.8% levels have equal priority. The 50% level has less weight.
- A touch needs a confirmed reaction before it can become a signal.
- Main origin
- 140
- Main end
- 100
Made-up prices. Shape example only, not a detected signal.
Start with the main move
A Buy setup measures a significant rise from a confirmed bottom to a confirmed top. A Sell setup measures the reverse move. Short, weak and choppy moves do not qualify.
The anchors stay fixed. Later prices cannot move them to make a failed setup look valid.
Wait for the price reaction
Only 38.2%, 50%, and 61.8% are used. A nearby price alone is not enough. Price must touch the level and confirm a reaction toward the main move.
A level can signal once per move. A failed level cannot be reused. If one candle crosses several levels, it cannot prove the order of the touches.
Daily scans use the confirmation date. Weekly scans use completed weeks. Later Daily prices must still hold the saved Weekly level.
Read the score and backtest
38.2% and 61.8% carry equal weight above 50%. Fibonacci shares the chart-structure score limit. A price boundary that another pattern already counts does not earn a second reward.
Backtests keep the three levels and two directions separate. Entry uses the next session open. Compare the same Daily or Weekly holding period.
How PatternLedger reads the pattern
These explanations are shared with the Pattern Reference. Strict means that more checks pass. It is not a promise of profit.
Fibonacci support
- Look for
- Support reaction at 38.2%, 50%, or 61.8% of a significant bottom-to-top rise. Ignore smaller swings within it.
- Strict needs
- Fixed main anchors, a clear touch, then an upward reaction. Give 38.2% and 61.8% equal priority above 50%.
- What makes it invalid
- Failed levels cannot signal again. A fresh extreme, deepest-level failure, expiry or missing prices ends the move.
Fibonacci resistance
- Look for
- Resistance reaction at 38.2%, 50%, or 61.8% of a significant top-to-bottom fall. Ignore smaller swings within it.
- Strict needs
- Fixed main anchors, a clear touch, then a downward reaction. Give 38.2% and 61.8% equal priority above 50%.
- What makes it invalid
- Failed levels cannot signal again. A fresh extreme, deepest-level failure, expiry or missing prices ends the move.
Check the real signal
- Use the displayed signal date and the right Daily or Weekly chart.
- Read the current direction, Strict or Loose label, and what makes the signal invalid.
- Compare matching backtest evidence. A diagram, score, or past result does not guarantee a future return.