Pivot Resistance Breakout Strategy for Long Uptrends

Summary

This long-biased strategy uses confirmed price pivots to draw step-like support and resistance levels, with a 20-period simple moving average shown on the chart. It opens a long position when the close is above the latest pivot high resistance. A close below the latest pivot low can cancel a pending long entry. The script also defines profit-taking and stop-loss levels from the average entry price, with defaults of 2% and 1.75%, respectively.

The accompanying description says positions may be closed when profitable and support crosses above resistance. However, the code’s close conditions and its short-side logic do not clearly match that description: short entries are commented out, and the exit rules depend on pivot comparisons and whether the entry condition remains active. The document supplies no performance results or market-specific validation, and its final explanation is cut off. Pivot confirmation also depends on bars to the right of a pivot, so signals may arrive after the turning point.

Key ideas

• A long entry is triggered when the close exceeds the latest confirmed pivot high.
• Pivot highs and lows are displayed as step lines and serve as resistance and support references.
• The script sets entry-relative profit and loss levels, with defaults of 2% and 1.75%.
• The code’s exit behavior is not fully consistent with the accompanying written description.

Tags

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