Pivot-Based Support and Resistance Breakouts with Trend and Risk Filters

Summary

This strategy describes trading breaks of recently detected pivot highs and lows, with direction filtered by a 200-period simple moving average. It records the latest pivot as resistance or support, then seeks a breakout followed by a confirming candle: a prior candle crosses the level and the current candle closes farther in the breakout direction. Longs require price above the moving average; shorts require price below it. Stops are placed at the breakout candle’s low or high, and targets are set at twice the per-unit risk. Quantity is calculated to risk a fixed amount based on the stated account capital.

The published material gives a Binance SOL/USDT hourly backtest interval, but no performance statistics or trade results. There is a gap between the narrative and source: although the description discusses offset zones and candle-pattern confirmation, the code calculates zone boundaries without using them for entries and uses a simple directional close confirmation. The fixed capital and risk amount also do not adjust with strategy equity, and slippage, fees, and parameter sensitivity are not quantified.

Key ideas

• Pivot highs and lows provide the latest resistance and support references.
• A 200-period moving average filters trade direction, and a subsequent close confirms a level break.
• Stops use the breakout candle’s opposite extreme, with a target twice the stop distance.
• Position quantity targets a fixed cash risk amount based on a fixed account capital.
• The source does not use the calculated zone offsets in its entry rules and reports no results.

Tags

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