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Fibonacci retracements drawn from one swing produce many possible levels. Clusters — areas where levels from several swings overlap — are often seen as more meaningful.

How to build a cluster:

• Draw retracements from two or three different swings.
• Mark areas where levels fall within a small distance (e.g. 3 pips or 0.2 × ATR).
• Treat the cluster as a zone, not a precise level.

Testing objectively:

• Define swing selection rules (e.g. last two swings larger than 1 × ATR).
• Compare reactions at cluster zones with reactions at random levels.

Without such a test, it is easy to remember the times a cluster worked and forget the rest.

Do you use Fibonacci clusters, and have you tested them against random levels?

I've tested something close to this on EURUSD, and the result was more modest than the cluster idea suggests. The attached chart is an illustration of how I set it up: retracements from two swings, with the 61.8% of one and the 50% of the other landing within 2 pips of each other at 1.0842.
Over about 120 cluster zones on M15, price reacted by at least 8 pips in 41% of cases. My random levels, picked within the same swing range, reacted in 33%. So there was an edge, but smaller than my memory had suggested.

The bigger difference was when the cluster also lined up with a prior swing high or low. Those reacted far more often, which makes me think the structure was doing most of the work and the fib was just pointing at it.

Your 0.2 times ATR tolerance seems right to me. Wider than that and almost everything becomes a cluster.

How do you define a reaction? I used 8 pips without first moving 5 pips through the zone.