Heatmap Levels and Higher-Timeframe Trend Confirmation

Summary

The strategy defines a trading range from rolling highs and lows, then smooths those extremes to create upper and lower heatmap levels. It compares two moving averages to set a broad trend direction and looks for price crossings of the relevant heatmap boundary in that direction. The script also marks crossings of the shorter trend average as possible reversals and plots warning signals near the heatmap levels before entry conditions occur.

The document describes chart signals rather than a fully specified high-frequency execution system: despite the label, it does not show order sizing, stop rules, or a trade-frequency limiter in its logic. It provides a one-hour BNB/USDT backtest configuration for roughly a year, but gives no performance statistics or evaluation. It flags sensitivity to lookback and average settings, false signals during volatile conditions, slippage, and frequent-trading costs. The warnings and plotted projections should therefore be treated as visual aids, not evidence that entries are predictive or profitable.

Key ideas

• Smoothed rolling highs and lows form upper and lower levels used as trading boundaries.
• The relationship between two moving averages determines the broad direction filter.
• Long and short entries occur when price crosses the corresponding heatmap level in the filtered direction.
• The script plots preliminary warnings and trend-average reversals alongside entry markers.
• The published backtest setup has no reported results, and the strategy logic omits explicit stop and sizing rules.

Tags

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