A Variable Resistance Level for Long and Short Breakout Signals

Summary

This short strategy defines a changing resistance level using the prior high associated with a lower high. It plots that level and checks the previous bar's close against it: a close at or above resistance triggers a long entry, while a close below it triggers a short entry. The concept is a simple rule for switching directional exposure as price moves across a reference level.

The document offers code and a brief description, but no backtest results, market selection, position sizing, exit logic, or risk controls. It is explicitly presented as a test strategy, so the material explains the signal construction rather than establishing that it is profitable or robust. The resistance calculation and use of the prior close also mean the exact behavior should be assessed across chart conditions before drawing conclusions.

Key ideas

• Resistance is derived from a prior high after a lower high occurs.
• The previous bar's close determines whether the strategy enters long or short.
• The resistance level is plotted for visual comparison with price.
• The document provides no performance evidence or detailed risk and exit rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.