Long Strategy Buying Confirmed Support Breaks with Safety Orders

Summary

This long-only strategy identifies price areas where recent candle bottoms cluster within a tolerance, then keeps a set of sufficiently distinct support bases. It tracks the nearest base below price and treats a close beneath that level as a potential break. A trade is entered only if price falls a further configurable percentage below the broken base within a limited number of bars, aiming to benefit if price later rebounds.

The initial entry uses a configurable share of capital, and additional safety orders add to the position after further declines, up to a set limit. The strategy exits at a stop based either on the average position price or the original broken base, and sets a profit target based on the break's depth. The author describes defaults aimed at ETH/USD on a 15-minute chart and notes commission assumptions, but supplies no quantified performance evidence. Averaging down increases exposure as price falls, and the rebound premise can fail during sustained declines; sizing and stop behavior therefore matter materially.

Key ideas

• Support bases are detected from repeated recent candle bottoms within a price tolerance.
• A close below the nearest support starts a break window, and a further decline confirms a long entry.
• The strategy can average into the position through a limited number of safety orders.
• Stops can reference either average entry price or the broken support, while the target depends on break depth.
• The strategy is long-only and its suggested defaults and historical claims do not establish future performance.

Tags

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