Fibonacci Retracement Forex Swing Trading Strategy

September 20, 2025

By

Ara

This strategy focuses on identifying trend-continuation setups on the 4-hour chart using a blend of moving averages, Fibonacci retracement levels, and price action confirmation. Traders begin by scanning for pairs with a clearly sloped 200 EMA, then wait for price to retrace and tap either the 50 or 200 EMA. A fib retracement is drawn from a recent swing high and low using the fractal indicator, and a trade setup is valid when the 0.71 level aligns tightly with the EMA tap. An entry is triggered after a reversal candle closes back above or below both the EMA and fib level.

The strategy is designed for simplicity and speed of execution, with a minimum stop loss of 10 pips, a fixed 2R target, and no trade management beyond break-even adjustments when a second trade is triggered. While fair value gaps (FVGs) are not required, they do increase setup quality. Clear invalidation and selection rules help filter out lower-quality opportunities, making this system highly suitable for structured backtesting and building confidence before trading live.

Easy
Swing
Asia
London
New York
Forex

Other strategies

Tori Trades Trend Line Strategy
Tori Trades Trend Line Strategy

By

Tori Trades

Swing off 4h trend line breaks with clean spacing and structure. TP at S/R for 2R+. Uses alerts to time entries.
Easy
Swing
Asia
London
New York
Indexes
Metals
Mayne's Monday Ranges
Mayne's Monday Ranges

By

Trader Mayne

Trade mean reversions around Monday’s range with clean 1hr reclaims or sweeps—simple, weekly setups with high-timeframe alignment.
Intermediate
Swing
Asia
London
New York
Crypto