Weekly Support and Resistance Zones as Persistent Trade Signals

Summary

This strategy uses the previous week’s high and low as reference levels, then compares each current bar’s high and low with those boundaries. In one signal mode, a bar fully below the prior weekly low sets a short state, while a bar fully above the prior weekly high sets a long state. An alternative mode compares the bar with the prior weekly high or low in a different pairing. When price lies between the relevant boundaries, the script carries forward the previous signal state. A setting can invert the direction of the resulting trades.

The script plots the weekly levels and colors bars according to the active state; it contains no performance results or empirical analysis. It is a compact example of turning higher-timeframe reference levels into persistent directional signals, rather than requiring a fresh crossover on every bar. The source specifically frames the strategy as educational or suitable for paper trading. Its rules do not specify risk controls, and the document gives no evidence that the approach is profitable across markets or test periods.

Key ideas

• The strategy uses the previous week’s high and low as support and resistance references.
• A bar entirely beyond selected weekly boundaries changes the persistent long or short state.
• When price does not meet a signal condition, the previous state is retained.
• A reverse setting switches the direction assigned to each signal.
• The document supplies no performance evidence and recommends educational or paper-trading use.

Tags

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