SUPPORT RESISTANCE STRATEGY [5MIN TF]

The SUPPORT RESISTANCE STRATEGY [5MIN TF] tool provides a complete automated trading framework designed for intraday breakout trading on the 5-minute timeframe. It combines pivot-based support and resistance levels with volume confirmation, trend filtering via EMA, and ATR-based trailing stop-losses to capture momentum while managing risk.

Usage

The strategy is primarily designed for intraday scalping or trend-following. A Long position is initiated when the price crosses above a Resistance level (Red Line), provided the price is above the EMA and volume exceeds the specified threshold. Conversely, a Short position is initiated when the price crosses below a Support level (Green Line), provided the price is below the EMA and volume confirmation is met.

The script includes a specific "Time Condition" originally optimized for the Indian Markets (9:15 AM to 3:30 PM). It features an automatic "Close All" function at 3:00 PM to avoid intraday margin penalties or gaps. Users can adjust the ATR multipliers to tighten or loosen the trailing stop-loss based on market volatility.

Details

The strategy employs several layers of confluence:

• Pivot Levels: Uses left and right bar lookbacks to identify significant local highs and lows as Support and Resistance.
• Volume Oscillator: Measures the percentage difference between a fast and slow EMA of volume to ensure breakouts occur with high participation.
• EMA Filter: Acts as a trend filter to ensure trades are taken in the direction of the broader short-term trend.
• Risk Management: Includes a "Max Risk" setting that utilizes the built-in strategy risk functions to limit intraday losses.

Settings

Core Parameters

• Left/Right Bars: Determines the lookback period for calculating pivot-based Support and Resistance levels.
• Volume Break: The threshold for the volume oscillator required to confirm a breakout.
• Price Cross EMA: The length of the Exponential Moving Average used as a trend filter.

Risk & Exit

• ATR Long/Short: Multipliers used to calculate the trailing stop-loss distance from the current price.
• Risk: The maximum allowable cash loss per intraday session.
• Properties (Strategy Tab): Users can adjust the "Order Size" to change the default number of contracts or lots per trade.

FAQ

How do I use the SUPPORT RESISTANCE STRATEGY [5MIN TF]?

Add the strategy to a 5-minute chart, adjust the "Time Condition" in the script code if you are trading outside of Indian Market hours, and configure the ATR multipliers to suit the volatility of your specific asset.

Can this be used on other timeframes?

While optimized for the 5-minute timeframe, the logic can be applied to others; however, the pivot lookback (L_Bars/R_Bars) and EMA length may need significant recalibration.

How can I access this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.