Daily Floor-Trader Pivot Breakout Strategy

Summary

This simple pivot strategy calculates daily levels from the prior day’s high, low, and close. Their average forms the central pivot, and the script derives first resistance and support levels from it. When the current close rises above resistance, it takes a long position; when it falls below support, it takes a short position. A reversal setting swaps those directions, while price between the thresholds retains the previous position state.

The document supplies a Pine Script implementation and explains the basic floor-trader pivot concept. It does not provide a backtest period, instrument-specific settings, or performance results, so it offers no evidence that the rules are profitable. The displayed logic uses only the first support and resistance levels for signals, despite the broader description mentioning additional levels. Its educational disclaimer and lack of explicit risk controls mean traders would need to evaluate position sizing, exits, and costs separately before drawing conclusions about practical use.

Key ideas

• The central daily pivot is calculated from the prior period’s high, low, and close.
• The first resistance and support levels define the long and short breakout thresholds.
• The strategy retains its prior directional state while price remains between those thresholds.
• A reversal option swaps the long and short signals.
• No performance results or explicit risk controls are supplied.

Tags

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