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Check out the new article: From Novice to Expert: Predictive Price Pathways.
Fibonacci levels provide a practical framework that markets often respect, highlighting price zones where reactions are more likely. In this article, we build an expert advisor that applies Fibonacci retracement logic to anticipate likely future moves and trade retracements with pending orders. Explore the full workflow—from swing detection to level plotting, risk controls, and execution.
Leonardo Fibonacci's 13th-century numerical sequence has stood the test of time because it represents fundamental growth patterns found throughout nature—from seashell spirals to galaxy formations. In financial markets, these same ratios (38.2%, 50%, 61.8%, etc.) consistently appear as price retracement levels that traders watch for potential reversal zones. But most traders use Fibonacci tools passively, drawing static lines on charts and waiting for price to approach them.
Our breakthrough comes from transforming these passive reference points into active predictive pathways. Instead of merely marking where price might reverse, we're building an Expert Advisor that visualizes the entire trade journey—from the expected retracement entry through the projected extension target. This transforms Fibonacci from a simple drawing tool into a dynamic trading system that anticipates market movement rather than merely reacting to it.
Author: Clemence Benjamin