CTS-Fibonacci and entry

 Excellent strategy. Combining high-timeframe Fibonacci levels with low-timeframe price action is a powerful and professional way to trade. This method allows you to identify significant areas of interest on the main trend and then execute with precision and a clearly defined risk.

Here is a complete trading plan based on your request.

The Core Concept: Confluence

This strategy works by finding confluence. Confluence is when multiple, independent technical reasons for a trade all point to the same price area.

• Your D1/H4 Fibonacci level provides the "where" – a key battleground with historical significance.

• Your M15 Price Action provides the "when" – the confirmation that buyers or sellers are taking control at that specific battleground.

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Part 1: The High-Timeframe Setup (D1 or H4)

Your first job is to identify a major, obvious swing and a breakout on the D1 or H4 chart. There are two primary Fibonacci tools to use here.

Scenario A: Breakout & Pullback to a Fibonacci Retracement Level

This is the most common and reliable setup.

1. Identify a Breakout: Find a clear consolidation range (a sideways box) on the D1/H4 chart that the price has decisively broken out of.

2. Identify the Major Swing: Find the most recent major swing that led to the breakout. This is Swing Low to Swing High for a bullish breakout, or Swing High to Swing Low for a bearish breakout.

3. Draw the Fibonacci Retracement:

   • For a Bullish Breakout: Draw the tool from the Swing Low up to the Swing High.

   • For a Bearish Breakout: Draw the tool from the Swing High down to the Swing Low.

4. Identify Key Levels: The most important Fibonacci retracement levels are the 50% and the 61.8%. You are looking for a "level cluster" where one of these Fib levels lines up perfectly with the old resistance-turned-support (for a bullish breakout) or support-turned-resistance (for a bearish breakout). This is your high-probability "hot zone."

Example (Bullish Breakout):

• Price breaks out above a range at 3,400.

• You draw your Fib retracement from the last major swing low to the new high.

• The 50% Fib level happens to be at 3,401.50.

• Your "hot zone" for a buy entry is now the 3,400 - 3,401.50 area. You now wait for the price to pull back into this zone.

Scenario B: Breakout to a Fibonacci Extension Target

This is used to find new areas of interest after a breakout has already run for a while.

1. Identify the Swing: Find the last clear swing on the H4/D1 chart (e.g., Swing High to Swing Low to a Lower High).

2. Draw the Fibonacci Extension: Use the three-point tool. For a bearish breakout, you'd click the Swing High, then the Swing Low, then the Lower High.

3. Identify Key Levels: The most common extension targets are 127.2% and 161.8%. These levels, which were once targets, can become significant support/resistance areas once they are reached. You would watch for price to hit one of these levels and then show a reaction.

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Part 2: The Low-Timeframe Entry (M15)

You have identified your D1/H4 Fibonacci "hot zone" and set an alert there. Now you do nothing until that alert triggers.

Once the price enters your zone, you zoom into the M15 chart and become a hunter for a specific price action pattern.

For Bullish Entries (At a Fib Support Level):

You are looking for confirmation that buyers are taking control.

• Pattern 1: The Higher Low (HL)

  1. Price pushes down into your Fib zone and makes a low.

  2. It bounces slightly and then pulls back, but fails to make a new low. This creates the Higher Low (HL).

  3. Entry: Buy when the price breaks above the small high between the two lows.

  4. Stop-Loss: Place it just below the low of the HL candle, plus your buffer.

• Pattern 2: The Bullish Engulfing Candle

  1. A bearish candle forms inside your Fib zone.

  2. It is immediately followed by a larger bullish candle that completely "engulfs" the previous red candle's body.

  3. Entry: Buy at the close of the engulfing candle.

  4. Stop-Loss: Place it just below the low of the engulfing pattern.

For Bearish Entries (At a Fib Resistance Level):

You are looking for confirmation that sellers are taking control.

• Pattern 1: The Lower High (LH)

  1. Price pushes up into your Fib zone and makes a high.

  2. It drops slightly and then pulls back, but fails to make a new high. This creates the Lower High (LH).

  3. Entry: Sell when the price breaks below the small low between the two highs.

  4. Stop-Loss: Place it just above the high of the LH candle, plus your buffer.

• Pattern 2: The Bearish Engulfing Candle

  1. A bullish candle forms inside your Fib zone.

  2. It is immediately followed by a larger bearish candle that completely "engulfs" the previous green candle's body.

  3. Entry: Sell at the close of the engulfing candle.

  4. Stop-Loss: Place it just below the high of the engulfing pattern.

The Complete Step-by-Step Workflow

1. Frame the Market (D1/H4): Identify a major swing and a breakout.

2. Draw the Tool (D1/H4): Draw your Fibonacci Retracement or Extension.

3. Find Confluence (D1/H4): Identify the key Fib levels (50%, 61.8%) that line up with other support/resistance structures. This is your "hot zone."

4. Set an Alert: Place a price alert at your "hot zone" and walk away.

5. Wait for the Alert: When the alert triggers, the market has come to your predefined level of interest.

6. Hunt for the Pattern (M15): Zoom into the M15 chart. Look for one of the specific price action patterns (HL, LH, Engulfing).

7. Execute: If a valid M15 pattern forms, execute your trade.

8. Set Stop-Loss: Immediately place your stop-loss based on the low/high of the M15 entry pattern.

This disciplined, top-down approach ensures that you are always trading with the backing of a significant high-timeframe level, while using low-timeframe price action to confirm your timing and minimize your risk.