Long-Only Support and Resistance Breakouts with SMA Filters
Summary
This long-only strategy tracks support and resistance from confirmed pivot highs and lows, then looks for a close crossing above the resistance level. It can require price to be above a simple moving average calculated from a selected timeframe and to be a minimum distance from that average. An additional filter limits entries to channels whose support-to-resistance width is below a configurable percentage. The script also includes controls for take profit, open trade count, and a cooldown after entries.
The supplied excerpt describes the setup and filters but ends before the full entry and exit logic, so their precise interaction cannot be confirmed. It reports no backtest results or evidence that the filters improve performance. Pivot levels require bars on both sides for confirmation, and the moving average is requested from a completed bar to reduce repainting concerns. These design details still require instrument-specific testing, including execution assumptions and the effects of multiple open trades.
Key ideas
- Entry resistance and support are updated from pivot highs and lows.
- A long setup requires a close crossing above resistance and a channel width within the configured limit.
- An optional simple moving average filter requires price to be above the average and sufficiently far from it.
- The excerpt includes take-profit, trade-count, and cooldown controls but omits the full order logic and any performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.