Micro-Trendline Breakouts with HMA, RSI, and ATR Risk Controls

Summary

This strategy seeks breakouts from short-term rising or falling trendlines drawn through the two latest confirmed pivot highs or lows. A close crossing the projected resistance line can trigger a long, while a close crossing projected support can trigger a short. Entries are filtered by the Hull Moving Average and RSI to align with direction and avoid some overextended moves.

Stops are set using a multiple of the 14-period ATR, with a take-profit target based on a fixed risk-to-reward ratio. The document describes the method and provides Pine Script, but gives no backtest results or performance evidence. It presents the strategy as intended for a four-hour timeframe, yet does not specify an instrument, sample period, transaction costs, or validation procedure. The pivot-based levels and indicator filters are parameterized, so their behavior and effectiveness may vary across markets and settings.

Key ideas

• The two latest pivot highs and lows define sloping resistance and support levels.
• A close crossing resistance or support can trigger a directional entry.
• The Hull Moving Average and RSI filter entries by trend and momentum conditions.
• ATR-based stops scale risk protection to recent volatility, and targets use a fixed risk-to-reward ratio.

Tags

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