Support and Resistance Entries Filtered by Daily Trend

Summary

This strategy combines fixed support and resistance levels with a simple daily trend filter. It enters long when the close is below the configured support level while above the previous daily close, and enters short when the close is above resistance while below that reference. The document describes a risk-reward target, stops near support or resistance, and an optional trailing stop, though the supplied script’s exit calculations do not clearly implement the described approach.

The published configuration uses support at 100, resistance at 200, a risk-reward ratio of 2, and enables trailing stops. Backtest settings specify BTC/USDT futures over roughly one month using three-hour bars, but no performance results are provided. The levels are fixed inputs rather than dynamically detected price zones, and the trend test compares price with the previous daily close. Breakouts can fail, trend classification can be wrong, and the code’s stop and target handling warrants careful review before interpreting results.

Key ideas

• The strategy uses fixed price levels for support and resistance.
• A daily close comparison filters entries by a simple trend direction.
• Long entries occur below support during an uptrend, while short entries occur above resistance during a downtrend.
• The stated risk-reward and trailing-stop design is not clearly reflected in the supplied exit calculations.
• The BTC futures 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.