Variable Resistance Breakout Strategy Using Prior Swing Highs

Summary

This short example defines a changing resistance level from an earlier high that follows a lower high. It plots that level and uses the previous bar’s close relative to resistance to choose direction: a close at or above the level leads to a long order, while a close below it leads to a short order. The author describes the approach as a simple test of variable resistance.

The document provides no backtest statistics, risk controls, position-sizing rules, or evidence that the resistance definition is effective. The brief code and description leave details such as order reversal behavior and practical execution unspecified. It is best read as a minimal breakout-style rule that would need testing and risk management before practical use.

Key ideas

• Resistance is derived from a prior high associated with a lower high.
• The resistance level is plotted as a reference for the strategy.
• The previous close determines whether the script enters long or short relative to resistance.
• The example supplies no performance data, sizing method, or explicit protective exits.

Tags

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