Pivot Point Support and Resistance Breakout Strategy

Summary

This strategy derives a pivot point from the previous period’s high, low, and close, then calculates three support levels and three resistance levels from that pivot and the prior range. The trader can select a support level as the long threshold and a resistance level as the short threshold. A close above the chosen resistance switches the position long; a close below the chosen support switches it short. Between thresholds, the prior position is retained. A reverse option flips the resulting direction.

The published settings use daily reference data for a BTC/USDT futures backtest with hourly strategy bars and 15-minute base data, but no performance statistics are reported. The document describes the approach as suitable for medium- to long-term holdings, though the configured timeframe and selected levels will affect actual behavior. It warns that historical levels may fail during high volatility and that frequent direction changes can incur costs. The proposed volatility-based sizing and additional stop rules are suggestions rather than tested parts of the shown method.

Key ideas

• The pivot uses the prior period’s high, low, and close, from which three support and three resistance levels are calculated.
• Users choose which support and resistance levels trigger position changes.
• A close beyond the selected resistance sets a long position, while a close below selected support sets a short position.
• The strategy retains its previous position when price remains between the selected thresholds.
• The document reports no performance results and notes high-volatility and switching-cost risks.

Tags

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