Support and Resistance Breakout Retests with Pivot Levels

Summary

This strategy identifies candidate support and resistance using pivot highs and lows confirmed by a configurable number of bars on each side. It tracks whether a level has been broken, then looks for a return toward that level within a tolerance. A break below support followed by a retest from below triggers a long entry; a break above resistance followed by a retest from above triggers a short entry.

The document explains the setup and exposes left-bar, right-bar, and retest-tolerance parameters. Its published backtest settings specify daily ETH/USDT data over about a year, but it gives no performance results. The entry rules are described as a way to filter some false breaks, though the code and method still allow false signals. Risks include repeated losses in ranging markets, large stops during volatile conditions, trading costs, and overfitting. No explicit stop-loss, take-profit, or position-sizing method is detailed.

Key ideas

• Pivot highs and lows provide changing candidate resistance and support levels.
• The strategy waits for a level break and a return near that level before entering.
• It buys a retest after a break below support and sells a retest after a break above resistance.
• Left and right pivot bars and retest tolerance control how levels and retests are identified.
• The published daily ETH/USDT backtest settings include no reported performance results.

Tags

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