Floor Trader Pivot Breakouts Using the Previous Day’s Prices

Summary

This backtest strategy calculates floor-trader pivot levels from the previous day’s high, low, and close. It averages those prices to obtain the central pivot, then derives the first resistance and support levels from that pivot and the prior day’s range. The current close determines the position: a close above resistance sets a long bias, while a close below support sets a short bias. Between those thresholds, the strategy retains its previous position, or remains neutral before any signal. An input can reverse the long and short directions.

The document explains that these levels can be calculated from prior-day data and can be used on shorter chart intervals, though it describes daily charts as common. It offers no backtest results or performance analysis, and identifies the script as educational. Its code also colors bars by position state; this visual feature does not add evidence that the trading rules are profitable.

Key ideas

• The central floor pivot is calculated from the previous day’s high, low, and close.
• The first resistance and support levels define thresholds for directional positions.
• A close beyond either threshold sets a long or short position; otherwise the previous state persists.
• A setting reverses the strategy’s position directions, and the document reports no performance results.

Tags

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