Pivot-Based Support and Resistance Entries with Percentage Exits

Summary

This strategy updates support and resistance from confirmed local price pivots, then looks for price to cross a level while remaining within a percentage zone around it. The published defaults use a pivot length of 2 and a zone of 0.4%. Long entries cross above support; short entries cross below resistance. The source sets exits as percentages of average entry price, with a 10% stop and a 26% profit target. The parameter table also gives 26%, although the overview describes the target as 27%.

The document provides BTC/USDT futures backtest settings covering December 2019 to January 2025, but reports no performance results. It describes the approach as applicable to trending and ranging markets, while warning that ranging conditions can produce false signals and that execution slippage and parameter sensitivity matter. Pivot confirmation requires bars on both sides of a candidate high or low, so the level is not known at the pivot bar itself. The source contains no explicit account-equity-based position-sizing rule, despite the overview's claim of dynamic sizing.

Key ideas

• Confirmed local highs and lows update the strategy's resistance and support levels.
• Entries require a cross through a pivot level while price is within a percentage zone around it.
• The source sets percentage-based stops and profit targets from the average entry price.
• The published backtest settings identify BTC/USDT futures but provide no performance statistics.
• Pivot confirmation, false breakouts, slippage, and parameter sensitivity are material limitations.

Tags

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