Floor Pivot Breakout Strategy Using the Previous Day’s Range

Summary

This backtest script calculates the floor pivot point from the previous day’s high, low, and close, then derives the first resistance and support levels. It goes long when the current close rises above first resistance and short when it falls below first support. Between those thresholds, it retains the prior position. A setting can reverse the resulting long and short signals, and bar colors indicate the current direction.

The document explains that floor pivots commonly use the prior day’s trading data and are often displayed on daily charts, though shorter chart intervals are possible. The script provides no exit rule beyond switching direction when the opposite threshold is crossed, and it reports no backtest performance, costs, or risk measures. Its educational description and code establish the signal construction but do not show whether the strategy is profitable or how it behaves across instruments and timeframes.

Key ideas

• The central pivot is the average of the previous day’s high, low, and close.
• First resistance and support are calculated from that pivot and the previous day’s range.
• A close above resistance sets a long bias, while a close below support sets a short bias.
• The signal persists between the two levels, and an option can reverse its direction.
• The document gives no performance statistics or explicit risk controls.

Tags

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