🌊 Swing · Pullback
MACD + Fibonacci retracement
Wait for MACD to signal a fresh trend, then enter on the pullback to a Fibonacci level (38.2% or 61.8%). Stop below the next Fib level; target the prior swing high/low.
Setup
- Chart: 4-hour or daily candles
- Draw Fibonacci retracement from the last confirmed swing low to swing high (long) or high to low (short)
- Plot MACD (12, 26, 9); wait for a fresh bullish crossover (MACD line crosses above signal)
Entry
Long: after a bullish MACD cross, enter on the pullback to the 38.2% or 61.8% Fib level, confirmed by a bullish reversal candle at the level. Short: mirror.
Exit
First target the 0% Fib (the swing point being retraced from). If momentum persists, extend to the 127.2% or 161.8% Fibonacci extension.
Stop-loss
A few points beyond the next Fib level (if entering at 38.2%, stop below 50%; if entering at 61.8%, stop below 78.6%).
When it works
- Clear trend on the higher timeframe with recognisable swing pivots
- Shallow pullbacks (38.2%) — reflects strong buyer interest
- MACD histogram stays above zero during the pullback
When it fails
- Choppy consolidation instead of a clean trend — Fibonacci levels overlap and lose meaning
- Deep pullbacks past 78.6% — usually signals a trend reversal
- MACD histogram flips against the trade before entry — momentum gone
General trading rules that apply
Regardless of the specific setup, these apply to every strategy on this site:
- Never risk more than 2% of your account on a single trade
- Place a hard stop-loss before entering — no exceptions
- Journal every trade: setup, reason, outcome, one lesson
- After two consecutive losses, stop for the session
- Backtest and paper-trade for a month before deploying real capital
Every strategy here is part of our in-house catalogue, written and calibrated for Indian markets. Past behavior does not guarantee future results. Charts run against 2-year Nifty data — actual results in your account will vary. Backtest, paper-trade, and size responsibly before risking real capital.