Pro Fibonacci Advancement

Your ideal XAUUSD Fibonacci setup

1. First establish the directional leg

Don't draw Fib randomly from yesterday's high to yesterday's low.

Wait for a clear impulsive move.

For example:

Bullish:

Asia → London

Liquidity sweep below Asia low → strong bullish displacement

Now you have:

Swing Low → Swing High

Draw Fib across that impulsive leg.

Then wait for price to retrace.

When is Fibonacci MOST effective?

For your strategy:

🥇 London → New York continuation

This is the scenario I would test first.

Your sequence could be:

6:00am–5:00pm Malaysia time

→ establish today's range/context

↓

London

→ liquidity gets taken

↓

Displacement

→ FVG created

↓

Fib drawn on displacement leg

↓

Retracement into 50–78.6%

↓

NY

→ continuation / expansion

This is particularly compatible with your existing idea of:

Liquidity → FVG → retracement → DOL

rather than simply:

Fib → entry.

Some current Fib frameworks similarly emphasize London/NY sessions and lower-timeframe confirmation after a higher-timeframe retracement zone is reached

The exact model I would backtest

A++ Fibonacci setup

STEP 1 — Context

Previous Day VP + POC

Previous Day High/Low

Today's developing range

HTF direction

↓

STEP 2 — Liquidity

Price takes:

Asia High / Asia Low

or

Previous Day High / Previous Day Low

↓

STEP 3 — Displacement

Strong move away from the liquidity sweep.

You want:

Sweep → displacement → FVG

↓

STEP 4 — Fibonacci

Draw Fib:

origin of displacement → extreme of displacement

Then monitor:

50% → 61.8% → 70.5% → 78.6%

↓

STEP 5 — Location confluence

The Fib zone becomes much more interesting if it overlaps:

FVG + previous VP level + POC/value area + liquidity + VWAP

You don't need all of them.

But the more independent pieces point to the same area, the stronger the location becomes. Fib itself does not create the edge.

↓

STEP 6 — 3–5m confirmation

Sweep/rejection → displacement → structure shift

Then enter.