Volume-Filtered Support and Resistance Sweep Strategy

Summary

The strategy identifies recent pivot highs and lows as resistance and support levels, then looks for price sweeps and reversals around those levels. A short signal occurs when price has moved above resistance and then closes back below it; a long signal uses the corresponding move below support followed by a close back above. Both signals require volume to exceed a multiple of its recent average. Entries are restricted to weekdays, and the script tracks repeated signals at progressively lower support or higher resistance levels to mark a separate purple trigger.

The document provides source code and charting logic, but no backtest statistics or market-specific performance evidence. It defines pivot sensitivity, volume threshold, and line length as adjustable inputs. The strategy's reversal premise can fail when price continues through a level, and the code has no explicit stop-loss or exit rule. Pivot confirmation also uses bars on both sides of the candidate pivot, so the level is identified only after subsequent bars have formed.

Key ideas

• The strategy marks pivot highs and lows as resistance and support levels.
• A sweep signal requires price to cross a level and close back through it, with volume above its recent average threshold.
• Long and short entries are limited to weekdays.
• The script marks repeated signals at successively lower supports or higher resistances with a purple trigger.
• The document supplies no performance results, and its code has no explicit stop-loss or exit rule.

Tags

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