Fibonacci Retrace + 50 EMA Hariss 369

This indicator combines 3 concepts:

Fibonacci retracement zones
50 EMA trend filter
Price interaction with specific Fib zones to generate Buy/Sell signals

Let’s break everything down in simple language.

1. Fibonacci Retracement Logic

The script finds:
Most recent swing high
Most recent swing low
Using these two points, it draws Fibonacci levels:

Fibonacci Levels Used
Level Meaning Calculation
0% Swing Low recentLow
38.2% Light retracement high - (range × 0.382)
50% Mid retracement high - (range × 0.50)
61.8% Deep retracement high - (range × 0.618)
100% Swing High recentHigh

🔍 Why only these levels?
Because trading signals are generated based ONLY on:38.2%, 50%,61.8%

These 3 levels define the golden retracement zones.

2. Trend Filter — 50 EMA

A powerful rule:
Trend Up (bullish)
➡️ Price > 50 EMA
Trend Down (bearish)
➡️ Price < 50 EMA
This prevents signals against the main trend.

3. BUY Conditions (Retracement + EMA)

A BUY signal appears when:
Price is above the 50 EMA (trend is up)
Price retraces into the BUY ZONE:
🔵 BUY ZONE = between 50% and 38.2% Fibonacci i.e.,close >= Fib50 AND close <= Fib38.2

This means:
Market is trending up
Price corrected to a healthy retracement level
Buyers are stepping back in

📘 Why this zone?

This is a moderate retracement (not too shallow, not too deep).
Smart money often enters at 38.2%–50% in a strong trend.

📘 BUY Signal Appears With:

Green “BUY” label

Green arrow below the candle

4. SELL Conditions (Retracement + EMA)
A SELL signal appears when:
Price is below the 50 EMA (trend is down)
Price retraces upward into the SELL ZONE:

🔴 SELL ZONE = between 50% and 61.8% Fibonacci i.e.,close <= Fib50 AND close >= Fib61.8

This means:

Market is trending down
Price made a pullback
Sellers regain control in the golden zone

📘 Why this zone?
50–61.8 retracement is the ideal bearish pullback level.

📘 SELL Signal Appears With:
Red “SELL” label
Red arrow above the candle

5. STOP-LOSS (SL) RULES

For BUY trades,
Place SL below 61.8% level.SL = Fib 61.8%
OR
more safe:SL = swing low (Fib 0%)

For SELL trades
Place SL above 38.2% level.SL = Fib 38.2%
OR conservative:
SL = swing high (Fib 100%)

6. TAKE-PROFIT (TP) RULES

Based on common Fibonacci extensions.

BUY Trade TP Options
TP Level Meaning
TP1 Return to 38.2% Quick scalping target
TP2 Return to swing high Full trend target
TP3 Breakout above swing high Trend continuation

Practical suggestion:

TP1 = 1× risk
TP2 = 2× risk
TP3 = trailing stop

SELL Trade TP Options
TP Level Meaning
TP1 Return to 61.8% Moderate bounce
TP2 Return to swing low Trend target
TP3 Break below swing low Trend continuation

7. Recommended Trading Plan (Simple)
BUY PLAN
Price > 50 EMA (uptrend)
Enter at BUY signal in 38.2–50% zone
SL at 61.8%
TP at swing high or structure break

SELL PLAN
Price < 50 EMA (downtrend)
Enter at SELL signal in 50–61.8% zone
SL above 38.2%
TP at swing low

🟩 Summary (Very Easy to Remember)
🔵 BUY
Trend: above 50 EMA
Zone: between 50% and 38.2%
SL: below 61.8%
TP: swing high

🔴 SELL
Trend: below 50 EMA
Zone: between 50% and 61.8%
SL: above 38.2%
TP: swing low