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Support and Resistance Breakout Trading with Indicator Filters

Article MQL5 code base
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Summary

This trading system looks for price breaks of support or resistance levels. It uses a simple moving average of lows to confirm a downside break and a moving average of highs to confirm an upside break. A minimum standard deviation condition is also required, while ADX and Bollinger Band readings act as additional entry filters.

The support and resistance levels are derived using the start of the latest ZigZag segment, whose length is determined by a ZigZag indicator routine. Open positions may be closed when an opposing trade signal appears. The described implementation is an expert advisor tested on hourly EUR/USD data from January 2010 through June 2019. The document provides no performance statistics, parameter values, execution assumptions, or out-of-sample results, so it does not establish profitability or robustness; the historical test period alone is insufficient to assess those limits.

Key ideas

  • The system enters on support or resistance breaks confirmed by moving averages of price highs or lows.
  • A standard deviation threshold, ADX, and Bollinger Bands are used as entry filters.
  • The latest ZigZag segment helps define the support and resistance reference levels.
  • An opposite signal can close an open trade.
  • The reported test uses hourly EUR/USD data, but no performance metrics are supplied.

Tags

ForexBreakoutTechnical indicatorsBacktesting

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