Woodie Pivot Breakouts Using the Previous Day’s Prices

Summary

This strategy calculates a Woodie pivot from the previous period’s high, low, and close, weighting the close twice. It tracks whether price crosses the pivot: a move from below to above sets a long state, while a close below the pivot sets a short state. An option can reverse those directions. The accompanying source plots the pivot and colors bars according to the resulting position state.

The document describes the method as a breakout approach and provides a width setting, a reverse-trading option, and a BTC/USDT futures backtest configuration using daily bars with hourly base data. It does not report returns, drawdowns, or other test outcomes. Its own risk discussion points to false breakouts, weak discrimination between trends and ranges, and the absence of effective stop and exit logic. The source’s position-state rules also do not amount to a distinct, validated entry and risk-management framework, so the material is best read as a simple pivot signal example.

Key ideas

• The Woodie pivot uses the previous period’s high, low, and a double-weighted close.
• A crossing above the pivot sets a long position state, while a close below it sets a short state.
• A parameter can reverse the direction of the pivot signals.
• The example plots the pivot and colors bars to show the signal state.
• No performance statistics or explicit stop-loss and take-profit framework are provided.

Tags

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