BOSFibAlgo

BREAK OF STRUCTURE + FIBONACCI

Quick Facts:

• Category: Market Structure / Smart Money
• Markets: All markets
• Timeframes: 15min, 1H, 4H, Daily

Overview

The BOSFib Algorithm combines Smart Money Concept (SMC) analysis with Fibonacci retracements for high-probability trade entries. The system identifies Break of Structure (BOS) events and then waits for price to retrace to key Fibonacci levels before entering in the direction of the break.

This approach captures institutional order flow while providing optimal entry points with defined risk.

How It Works

SWING STRUCTURE DETECTION Identify market structure using pivot points:

• swingHigh = ta.pivothigh(high, swingLookback, swingLookback)
  • swingLow = ta.pivotlow(low, swingLookback, swingLookback)
  • Track last and previous swing levels

BREAK OF STRUCTURE (BOS) Detect when price breaks significant structure:

• Bullish BOS: Price breaks above last swing high
  • Bearish BOS: Price breaks below last swing low
  • Confirmation mode: Wick or Close break
  • Minimum BOS distance filter (ATR-based)

FIBONACCI RETRACEMENT After BOS, calculate retracement levels:

Bullish BOS:

• Range: Last swing low to BOS high
  • 38.2%, 50%, 61.8%, 78.6% retracement levels

Bearish BOS:

• Range: Last swing high to BOS low
  • 38.2%, 50%, 61.8%, 78.6% retracement levels

ENTRY AT FIB LEVELS Wait for price to retrace to selected Fib level:

• Long: After bullish BOS, price retraces to Fib level and bounces
  • Short: After bearish BOS, price retraces to Fib level and rejects

EXPIRATION LOGIC BOS setups expire if:

• Price reaches opposite extreme (trend failure)
  • Too many bars pass without Fib touch
  • New BOS in opposite direction occurs

Key Parameters

STRUCTURE DETECTION:

• swingLookback (5): Bars on each side for swing detection
  • bosConfirmation ("Close"): "Wick" or "Close" for BOS confirmation
  • minBOSDistance (0.5): Minimum break distance as ATR ratio

FIBONACCI:

• fibLevel (61.8): Primary Fib level for entry
  • useFib382 (true): Enable 38.2% level
  • useFib50 (true): Enable 50% level
  • useFib618 (true): Enable 61.8% level
  • useFib786 (false): Enable 78.6% level

ENTRY:

• entryConfirmation ("Rejection"): "Touch" or "Rejection" at Fib
  • maxBarsAfterBOS (20): Expiration for BOS setup

Best Use Cases

✅ SMART MONEY trading following institutional footprints ✅ TREND CONTINUATION after structural breaks ✅ PRECISION ENTRIES at key retracement levels ✅ MULTI-TIMEFRAME ANALYSIS (structure on higher TF, entry on lower)