Support/Resistance Conditions
Support/Resistance conditions are only used an exit condition.The strategy will exit when price closes below/above the lowest/highest point x bars back. If long, it will exit when price closes below the lowest point x bars back. If short, it will exit when price closes above the highest point x bars back.The StratBuilder will plot a dashed red horizontal line upon entry, wherever this level is.
If the stop loss is closer to entry than this support/resistance level, then the support/resistance condition will not be used on that trade and the dashed horizontal line will not be plotted.Long Example:If you're long, and the number in 'Support/Resistance Bars Lookback' is 5, and you check the box for 'Exit when price closes below/above support/resistance', then the strategy will close the trade whenever price closes below the lowest point in the last 5 bars.
Short Example:If you're short, and the number in 'Support/Resistance Bars Lookback' is 5, and you check the box for 'Exit when price closes below/above support/resistance', then the strategy will close the trade whenever price closes above the highest point in the last 5 bars.