Weekly Support and Resistance Levels as Directional Trading Signals

Summary

This script turns the prior week’s high and low into support and resistance references, then assigns a directional position from the current bar’s range relative to those levels. In one mode, a bar fully below the prior low indicates a short bias and a bar fully above the prior high indicates a long bias; otherwise the prior position is retained. An alternate mode compares the bar against both prior-week boundaries. A reversal setting swaps long and short signals, and the script plots the weekly levels and colors bars by direction.

The page provides source code but no strategy report results, tested markets, or performance statistics, so it offers a rule set rather than evidence of profitability. The behavior depends on how weekly data is aligned with the chart timeframe, and the position-persistence logic can retain a signal through periods without a new boundary condition. The source itself advises learning or paper trading, making independent testing, transaction-cost assumptions, and checks for historical data handling important before relying on the signals.

Key ideas

• The strategy derives reference levels from the previous week’s high and low.
• It assigns long or short bias when the current bar lies entirely beyond a weekly boundary.
• A selectable mode changes how the bar is compared with the prior-week range.
• A reversal option swaps the direction of the generated signals.
• The page supplies no performance evidence, so the rules need independent backtesting and review.

Tags

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