Built MTF “GOLDEN POCKET” System for XAU/USD
I've been working on a golden pocket retracement approach for XAUUSD and wanted to share the logic and get some outside eyes on it before I take it further.
The idea: identify swing legs on the 15m chart, calculate the 61.8%–65% Fibonacci retracement zone (the "golden pocket") for each leg, then wait for price to tag that zone and print a rejection candle on the 5m before entering — so structure comes from the higher timeframe but the entry itself is timed more precisely on the lower one. Stop-loss sits beyond the swing point (ATR-buffered or at the 78.6% level, configurable), and take-profit scales out across three levels: the prior swing point, then two Fibonacci extensions beyond it.
(Not financial advice, backtested performance ≠ future results, trade at your own risk.)