Support and Resistance Filters for Moving Average Breakout Signals
Summary
This strategy combines a 9-period and 21-period simple moving average crossover with dynamic support and resistance levels calculated from the recent low and high. A bullish crossover generates a long entry when the close is above support; a bearish crossover generates a short entry when the close is below resistance. Opposite signals are intended to close existing positions. The document also describes charted signal markers and an equity plot, and lists Bitcoin futures backtest settings.
No performance metrics or test conclusions are provided. The stated aim is to filter crossover signals with price context, but the described price checks do not necessarily require a fresh breakout through the corresponding level. The source contains no explicit stop loss and the strategy may trade frequently in sideways markets; moving-average lag and false breakouts are also noted. Suggestions such as volume filters, volatility controls, and stricter breakout conditions are ideas for further testing, not established improvements.
Key ideas
- The strategy pairs short and long simple moving average crossovers with recent high and low levels.
- A bullish crossover can open a long when the close is above support, while a bearish crossover can open a short when the close is below resistance.
- Opposite signals are used to close positions, but there is no separate stop-loss rule.
- The document reports no performance evidence and identifies whipsaws, lag, and false breakouts as risks.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.