Scalping Support Resistance Strategy

The Scalping Support Resistance Strategy indicator provides an automated scalping framework for BTC and other high-volatility assets by identifying breakout levels derived from historical price averages. It identifies a dynamic support and resistance line to execute trend-following entries based on price breakdowns and breakouts, managed through integrated risk parameters.

Usage

The Usage section focuses on how the script identifies entry points and manages active positions. The strategy is designed primarily for scalping Bitcoin (BTC), though it can be applied to other assets.

The script monitors a specific price level calculated from the average of the High, Low, and Close (HLC3). When the current market price crosses this level, the strategy prepares an entry:

• Long Entries: Initiated when the price breaks above the calculated level.
• Short Entries: Initiated when the price breaks below the calculated level.

Users can control the sensitivity of the level detection via the "Look Back" and "Point Back" settings. Once a trade is active, the script automatically plots the Exit targets (Take Profit and Stop Loss) based on a percentage of the entry price. The bar colors change dynamically to reflect the current position status: green for long, red for short, and blue for neutral.

Details

The script's core logic revolves around the hlc3 price source (the average of High, Low, and Close). It calculates the lowest hlc3 value over a user-defined lookback window. This value is then offset by the "Point Back" parameter to create a trailing support/resistance line.

The strategy is refactored for modern automation, featuring alert-optimized order execution logic. It utilizes a custom routing library to format alert messages for automated trading systems. The script execution is also designed to minimize repainting by utilizing barstate.islastconfirmedhistory to ensure signals are processed on confirmed candle closes.

Settings

• Symbol: The ticker symbol used for the order message routing (e.g., BTC).
• ID: A unique identifier used for webhook or routing integration.
• Balance: The position size or balance to be allocated per trade.
• Take Percent: The percentage distance from the entry price to set the Take Profit target.
• Stop Percent: The percentage distance from the entry price to set the Stop Loss level.
• Look Back: The number of bars used to calculate the lowest average price (HLC3).
• Point Back: The historical offset used to determine which previous "lowest" value acts as the current level.
• Show Back Test: A toggle to enable or disable the visualization of historical trades on the chart.

FAQ

How does the Scalping Support Resistance Strategy determine trade entries? The strategy enters trades when the price breaks through a level determined by the lowest average of the High, Low, and Close over a specific lookback period.

Can I use this strategy on timeframes other than scalping timeframes? While optimized for scalping BTC, the logic can be applied to any timeframe; however, the Look Back and Percentage settings should be adjusted to match the volatility of the chosen period.

How can I access the Scalping Support Resistance Strategy? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.