Combining Volume, Candles, Moving Averages, and Support for Trade Entries

Summary

This automated strategy combines a simple moving average, volume spikes, candle direction and range, and user-entered support and resistance levels. Its long rule looks for a bullish candle near the configured support level with volume above a moving average threshold. Its short rule requires price below the moving average, a large bearish candle, and elevated volume. Fixed-point stop-loss and take-profit exits are specified for both sides. The document frames these conditions as a way to combine trend, price action, volume, and location rather than relying on one signal.

The published settings describe a daily ETH/USDT backtest, but no results are supplied, so the claimed signal filtering and risk benefits are not demonstrated. The source code’s actual long condition does not use resistance, and the support proximity test allows any close below the upper boundary, which may include prices far beneath support. Stops and targets are fixed in points, so their relative size varies with price and volatility. The document itself highlights stale static levels, unstable volume patterns, missing market-regime and time filters, and the need for adaptive risk controls.

Key ideas

• The long setup combines proximity to configured support, a bullish candle, and elevated volume.
• The short setup combines price below a moving average, a large bearish candle, and elevated volume.
• Both directions use fixed-point stop-loss and take-profit levels.
• The source’s long condition does not use the configured resistance level and can qualify closes well below support.
• Daily backtest settings are provided without reported performance results.

Tags

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