Fibonacci retracements on M5: testing the 61.8% claim

[FXS London Scalper]

The 61.8% retracement is said to be a key level for pullbacks. Testing it is easier than debating it.

Method:

• Define a swing objectively, for example a move of at least 15 pips on M5 without a pullback of more than 3 pips.
• note the largest retracement expressed as a share of the swing.
• Compare the distribution with what you'd expect without any special level.

What you're looking for: a cluster of reversals around 61.8% compared with nearby percentages like 55% or 70%. If pullbacks are spread evenly, the level is not special in your data.

Practical point: even without a special level, retracements of 50% to 70% are common for many swings, so a zone may still be useful as a rough entry area.

Record the sample size and period with the result. A few dozen swings won't separate a real cluster from noise, so collect a few hundred before drawing conclusions, and test separately for trend and range days, because pullback depth often differs between them.

Has anyone tested Fibonacci levels with a clear method?