Long-Only Resistance Breakouts with SMA Filtering and Per-Trade Targets

Summary

This strategy enters long when the closing price crosses above the latest confirmed pivot resistance. It also requires the distance between the latest pivot support and resistance to remain below a configurable channel-width limit. Pivot confirmation uses left and right bar counts, so levels are identified only after subsequent bars confirm them.

Optional filters require price to be above a simple moving average and a minimum percentage distance from it; the moving average can use another timeframe and references a closed bar. A cooldown limits how soon another entry may occur, and a cap constrains concurrent open trades. The strategy allows multiple entries and places a separate percentage-based limit take-profit for each entry. The published description recommends a short chart interval and a longer cooldown, but supplies no backtest results or evidence for that recommendation. There is no explicit stop-loss, so the take-profit and entry filters alone do not define downside risk; outcomes will depend on instrument, settings, costs, and execution assumptions.

Key ideas

• Long entries require a confirmed resistance breakout and a support-resistance channel within the configured width.
• The optional moving-average filter uses a closed bar and can reference a selected timeframe.
• A minimum distance from the moving average, cooldown, and open-trade cap constrain entries.
• Pyramiding is permitted, with a separate percentage take-profit for each position.
• The description provides no performance evidence, and the rules do not include an explicit stop-loss.

Tags

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