IsAlgo - Support & Resistance Strategy

15 thg 6, 2024

► Overview:
The Support & Resistance Strategy is designed to identify critical support and resistance levels and execute trades when the price crosses these levels. Utilizing a combination of a moving average, ATR indicator, and the highest and lowest prices, this strategy aims to accurately pinpoint entry and exit points for trades based on market movements.

► Description:
The Support & Resistance Strategy leverages the ATR (Average True Range) and a moving average to identify key support and resistance levels. The strategy calculates these levels by measuring the distance between the current market price and the moving average. This distance is continuously compared with each new candle to provide an estimate of the support and resistance levels.

The ATR is utilized to determine the width of these levels, ensuring they adjust to market volatility. To validate these levels, the strategy counts how often a candle’s low or high touches the estimated support or resistance and then bounces back. A higher frequency of such touches indicates a stronger, more reliable level.

Once the levels are confirmed, the strategy waits for a candle to close above the resistance level or below the support level. A candle closing above the resistance triggers a long entry, while a candle closing below the support triggers a short entry.

The strategy incorporates multiple stop-loss options to manage risk effectively. These options include setting stop-loss levels based on fixed pips, ATR calculations, or the highest/lowest prices of previous candles. Up to three take-profit levels can be set using fixed pips, ATR, or risk-to-reward ratios. A trailing stop feature adjusts the stop loss as the trade moves into profit, and a break-even feature moves the stop loss to the entry price once a certain profit level is reached.

Additionally, the strategy can close trades if the price crosses the opposite support or resistance level or if a candle moves significantly against the trade direction.

↑ Long Entry Example:


↓ Short Entry Example:


► Features & Settings:
⚙︎ Levels: Configure the length, width, and ATR period for support and resistance levels.

⚙︎ Moving Average: Use an Exponential Moving Average (EMA) to confirm trend direction. This can be enabled or disabled.

⚙︎ Entry Candle: Define the minimum and maximum body size and the body-to-candle size ratio for entry candles.

⚙︎ Trading Session: Specify the trading hours during which the strategy operates.

⚙︎ Trading Days: Select which days of the week the strategy is active.

⚙︎ Backtesting: Set a backtesting period with start and end dates. This feature can be deactivated.

⚙︎ Trades: Customize trade direction (long, short, or both), position sizing (fixed or percentage-based), maximum open trades, and daily trade limits.

⚙︎ Trades Exit: Choose from various exit methods, including profit/loss limits, trade duration, or crossing the opposite support/resistance level.

⚙︎ Stop Loss: Set stop-loss levels using fixed pips, ATR-based calculations, or the highest/lowest price within a specified number of previous candles.

⚙︎ Break Even: Adjust the stop loss to break-even once certain profit conditions are met.

⚙︎ Trailing Stop: Automatically adjust the stop loss as the trade moves into profit.

⚙︎ Take Profit: Define up to three take-profit levels using fixed pips, ATR, or risk-to-reward ratios based on the stop loss.

⚙︎ Alerts: Receive alerts for significant actions such as trade openings and closings, with support for dynamic values.

⚙︎ Dashboard: A visual display on the chart providing detailed information about ongoing and past trades.

► Backtesting Details:
Timeframe: 1-hour US30 chart
Initial Balance: $10,000
Order Size: 5 Units
Commission: $0.5 per contract
Slippage: 5 ticks
Stop Loss: Based on the opposite support/resistance level or break-even adjustments

16 thg 11, 2024

Phát hành các Ghi chú

• Added Minimum Stop Loss Pips.
  
• Fixed issue with missing data in alerts.
  
• Updated styles and default colors.
  
• Included fixes for other bug issues.
  

3 thg 2

Phát hành các Ghi chú

• Fixed an issue with the alert function.
  
• Upgraded the script to the latest TradingView version.
  

8 thg 3

Phát hành các Ghi chú

• Address issues related to sharing results.