Support-Resistance Breakouts Filtered by a Moving Average

Summary

This strategy seeks breakouts using price levels drawn from daily and weekly data, then filters entries with a 10-period simple moving average. The accompanying description presents a 30-day low as support and a 30-week high as resistance, while the code also compares closes with the highest and lowest closes over three daily bars. Long entries require the breakout condition, price above the daily low, and a cross above the moving average; shorts use the corresponding lower-price and cross-below conditions.

The document argues that combining levels across time horizons with an average filter may help capture trends and reduce signals in ranging markets. It describes a roughly one-month BTC/USDT futures backtest setup but supplies no performance results. The code's breakout function checks whether price is above the recent high or below the recent low, and it does not implement the stated profit-taking or stop-loss controls. The support and resistance logic also differs between the prose and code, so the intended level definitions need careful interpretation.

Key ideas

• The strategy combines daily and weekly price references with a 10-period moving average filter.
• Entries require a price breakout condition plus a moving-average crossover in the trade direction.
• The prose describes longer lookback levels, but the code uses recent three-day closing extremes for its breakout test.
• No performance metrics are reported for the stated BTC/USDT futures backtest setup.
• The source contains no explicit stop-loss or take-profit orders despite the prose discussing risk controls.

Tags

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