The Golden Fib
This strategy is largely based on a particular structuring of the Fibonacci indicator that outlines a ‘Golden Zone’ where you can look for trading opportunities.
As with most trades, this strategy is best used in confluence with other buy or sell indicators. Using the Golden Fib by itself is not a reliable means of trading. That said, it is particularly effective when paired with liquidity zones and a long-term moving average, such as the 100 or 200 EMA/SMA.
You'll start by properly arranging your Fibonacci indicator to match the picture below. Remove all the lines except the 100%, 78.60%, 71%, 0%, -23.60%, and -61.80%.
When applying this fib, you will start by placing the 100% line at the recent high and the 0% at the recent low or vice-versa with the 100% at the recent low and the 0% at the recent high (whichever suits your preference). Generally speaking, your stop-loss will be just beyond the 100% line, but there are no rules and I would encourage you to use the fib and Golden Zone in whatever way works for you.
The Golden Zone in which you will be looking for entries is between the 71% and 73.60% lines. The 0%, 23.60%, and 61.80% lines will represent ‘take profit’ levels. Use your best judgment based on price action and other indicators to assess which levels are best for you. Taking partials at each level is also a viable strategy.
As alluded to, this Golden Fib works very well with liquidity zones (areas where the underlying experiences significant buying or selling).
A final consideration when using this strategy is the long-term moving average. As a general rule, you want to avoid taking buys when price is blown the moving average and avoid taking sells when price is above the moving average.
Always keep in mind you can deviate from the moving average rule as you see fit, just make sure your other buy/sell confluences outweigh the long-term moving average. Also feel free to apply the moving average rule on lower timeframes like the 4h or 1h. You could have fewer losing trades in adhering to such strict entries, but you will likely miss a lot of good trades as well.