Daily Pivot Support and Resistance Breakout Strategy

Summary

This strategy calculates a daily pivot and first support and resistance levels from the previous day’s high, low, and close. It tracks price relative to those levels: a move above resistance sets a long direction, while a move below support sets a short direction. An optional reverse setting flips the resulting direction. The levels are displayed on the chart, and the source enters or maintains positions according to the current signal. The document explains the formulas and intended use but supplies no backtest results or performance measurements.

The method is simple and may help identify directional moves, but its fixed daily levels can generate repeated reversals in ranging markets. A continuing move through a level can also leave a position exposed; the source contains no explicit stop-loss or position-sizing rules. Additional filters, risk controls, and testing across market conditions would be needed before judging its reliability.

Key ideas

• The daily pivot and first support and resistance levels are derived from the prior day’s high, low, and close.
• A close above resistance sets a long signal, while a close below support sets a short signal.
• An optional reverse setting switches the direction of each signal.
• The source provides no performance evidence and includes no explicit stop-loss or position-sizing mechanism.
• Ranging markets can produce unnecessary trades, while strong moves beyond a level may increase losses.

Tags

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