ADX-Adjusted Supertrend Zones with Support and Resistance Entries

Summary

This strategy combines a Supertrend line with zones adjusted by an ADX calculation, then looks for price to cross those zones while remaining within recent support or resistance bounds. Traders can enable long, short, or both directions. The script calculates support from prior lows and resistance from prior highs, with separate lookback settings, and uses directional movement to derive the ADX-based adjustment to the Supertrend levels.

Positions use percentage-based trailing stops and fixed percentage profit targets. The code also includes optional trade-size increases after losses, using an array-based progression described as similar to D’Alembert sizing. It exposes settings for the ATR period, Supertrend factor, lookbacks, exits, and sizing. The document provides no backtest results or risk analysis. The loss-responsive sizing can increase exposure after losing trades, and the entry conditions and ADX zone construction are not validated here; traders would need to assess them against costs, market regimes, and drawdown limits.

Key ideas

• The strategy places ADX-adjusted buy and sell zones around Supertrend levels.
• Entries require price to reach a zone while satisfying recent support or resistance conditions.
• Long and short positions use separate percentage trailing stops and profit targets.
• An optional sizing progression increases trade quantity after losses and adjusts after wins.
• The source offers configurable rules but no evidence of profitability or control of drawdown risk.

Tags

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