Golden Pocket

Golden Pocket draws the golden pocket — the retracement band spanning the 0.618 and 0.65 ratios of a measured leg — across every confirmed swing, so the deep-pullback zone is anchored mechanically instead of by hand. Swings confirm with 20 bars on each side by default; upward legs produce bullish pockets, downward legs bearish ones. Each pocket runs a strict lifecycle — zone tests register on wicks, breaks and invalidation only on closes — with a status label following the band from fresh through tested, broken or invalidated.

How to Trade the Golden Pocket?

• Price enters a bullish pocket: the pullback reached the band — demand a trigger rather than a blind fill; an alert covers the touch.
• Rejection inside the band: a wick pierces the pocket and the bar closes back beyond it, strengthening the continuation read.
• Pocket broken on a close: acceptance beyond the band points toward the 0.786 level, where the premise gets its final test.
• Invalidation: a close through the invalidation level cancels the pocket.

The dotted swing leg shows the anchors the levels inherit, and the dashed line marks where stops framed by the zone logic belong.

Golden Pocket Settings

• Swing Length (default 20): bars each side required to confirm a swing.
• Pocket Legs (default Both): draw pockets on bullish legs, bearish legs, or both.
• Pocket Band (defaults 0.618 to 0.65): the two retracement ratios bounding the band.
• Invalidation (default 0.786 Level): break the premise at the 0.786 retracement or at the swing origin.
• Maximum Pockets (default 3): most recent pockets kept on the chart.
• Keep Invalidated Pockets (default disabled): retain cancelled pockets, grayed and frozen.
• Style toggles: swing leg, invalidation line and labels on by default; rejection markers off.

Frequently Asked Questions

How does the Golden Pocket differ from DiNapoli Levels?

Both build zones from Fibonacci ratios, but this tool commits to a single band — 0.618 to 0.65 — and polices its lifecycle bar by bar. DiNapoli Levels works a broader retracement and expansion framework, trading breadth for the pocket's one rule-bound zone.

Should I buy every touch of a bullish pocket?

No. The tool's own hierarchy treats a rejection — a wick through the band with a close back beyond it — as the event worth acting on, and a close through the band as the warning that the 0.786 comes next.

What does raising the Swing Length change?

Larger values demand more bars around each pivot, so pockets anchor to slower, more significant legs and appear later; smaller values track faster swings with noisier anchors.