Two-Bar Fib Retrace Strategy [Futures] by holubets_i19
By holubets_i19
Performance Metrics
- Author: holubets_i19
- Symbol: CME_MINI:MNQ1!
- Timeframe: 5 minutes
- Net P&L: +5,190.50 USD (+5.19%)
- Win Rate: 21.9%
- Profit Factor: 3.728
- Max Drawdown: 1,190.00 USD (1.15%)
- Total Trades: 41
Description
OverviewThe Two-Bar Fib Retrace Strategy is a momentum-based price action system designed for futures trading on intraday timeframes (5m recommended). It identifies two-bar impulse moves with rising volume, then waits for a precise 50–61.8% fibonacci retracement into the second bar's range before triggering an entry. The strategy is trend-filtered using VWAP — longs only above, shorts only below — and layered with a full suite of ICT institutional levels to provide confluence and context on every trade.How It WorksStep 1 — Impulse DetectionThe indicator looks back at the previous two closed bars and checks for a valid impulse:Both bars must have a body that is at least 50% of their total range (full-body filter)Bar 2 must have higher volume than Bar 1 (rising volume confirmation)Two impulse types are supported:Matched — both bars are the same color (both bullish or both bearish)Mixed — opposite-colored bars where Bar 2 closes beyond Bar 1's high (bull) or low (bear), showing momentum continuation despite the color changeStep 2 — Retrace ZoneOnce a valid impulse is detected on Bar 2's close, the indicator immediately draws a shaded retrace zone on the chart representing the 50% to 61.8% fibonacci retracement of Bar 2's range. For a bull impulse this zone sits in the lower half of Bar 2. For a bear impulse it sits in the upper half.Step 3 — Entry TriggerThe entry fires in real time when the current bar's wick touches inside the retrace zone — no waiting for the bar to close. This allows you to enter on the retrace as it happens rather than one bar late.Step 4 — Stop LossStop loss is placed 1 point beyond Bar 2's wick — below Bar 2's low for longs, above Bar 2's high for shorts. Clean, mechanical, and tight.VWAP Trend FilterAll signals are filtered by VWAP direction:Long signals only fire when price is above VWAPShort signals only fire when price is below VWAPThis keeps the strategy aligned with intraday institutional order flow and prevents counter-trend entries. The VWAP filter can be toggled off in settings if you prefer unfiltered signals.ICT Institutional LevelsThe strategy includes a full ICT-style level system with automatic tracking and smart label combining:Previous Day High / Low (PDH / PDL) — resets and plots dailyPrevious Week High / Low (PWH / PWL) — resets weekly on MondayTrue Day Open — plots the 6 PM ET open as a dotted lineSession Highs / Lows — tracks and marks the high and low of each session as it closes: Asia (8pm–12am ET), London (2am–5am ET), NY AM (8:30am–11:30am ET), NY Lunch (12pm–1pm ET), NY PM (1:30pm–6pm ET)Lookback control — limit visible levels to 1 Day, 1 Week, 1 Month, or MaxMitigated levels — optionally keep levels visible after price trades through themCombined overlapping labels — when multiple levels sit at the same price, labels are merged into a single clean label rather than stackingAll ICT levels are drawn in black with black text for a clean, uncluttered chart.DashboardA live dashboard in the top right corner shows:Current killzone sessionVWAP directionVolume ratio vs MABar 2 volume confirmation statusBar 1 and Bar 2 body percentageCurrent impulse typeProximity to nearest ICT levelLast signal directionSettingsSettingDefaultDescriptionMin Body % of Range0.5Both impulse bars must meet this thresholdSL Offset1.0 ptPoints beyond Bar 2 wick for stop placementVWAP FilterOnLongs above / shorts below VWAPVolume MA Length20Baseline for volume ratio calculationShow Retrace ZoneOnDraws 50–61.8% fib box on impulse detectionLookback Period1 WeekControls how far back ICT levels are drawnTimeframe Limit30mICT levels hidden on timeframes above thisRecommended UsageTimeframe: 5 minute (works on all intraday timeframes)Markets: Futures (ES, NQ, CL, GC) — commission and slippage modeled at $2.50/contractBest sessions: New York Open (8am–11am ET) and London Open (2am–5am ET) for highest quality impulsesConfluence tip: Signals that form near PDH, PDL, PWH, PWL, or session highs/lows carry significantly more weight — the dashboard flags proximity automaticallyAlertsSix pre-built alert conditions are included:LONG SignalSHORT SignalLONG in NY KillzoneSHORT in NY KillzoneLONG in London KillzoneSHORT in London KillzoneAny SignalDisclaimerThis script is for educational and informational purposes only. Past performance is not indicative of future results. Always use proper risk management. This is not financial advice.