Using combination bollinger band and RSI indicator as guide to predict price volatility and the best entry point. The strategy logic is pretty straightforward where we're interested with close price that touches the lower bollinger band ; there are only two scenarios that will happened after the price reaches the lower band; the price might rebound from the lower bollinger band or drop lower and continue downtrend. To confirm the price movement, we use a second indicator which is the RSI to further investigate the price trend. For example, if the price reaches the lower bollinger band but the RSI value is not in the oversold region, we can conclude that the price will go lower and continue downtrend. If the RSI value is in the oversold region, we can use this price area as our entry point.
Stop loss is necessary to avoid losing too much capital if the RSI value lingers too long in the oversold region.
Best take profit area is when the price rebound above the middle bollinger band area/upper bollinger band or when the RSI reaches overbought region; whichever comes first.
Long entry: RSI < 30 & close price < lower bollinger band
Exit entry: RSI > 70
Default stop loss: -25%
Informacje o Wersji
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After more than two weeks of dry-run trading, bollinger band and rsi strategy are not able to accumulate huge profit. Some profits were lost due to lag on the indicators; rsi and bollinger band are pretty slow indicator for high frequency trading. Below is the summary of my trades using this strategy:
Hey! repeat w coins: how do I create alerts for just the long positions in blue? If not able in a specific alert then how would I go about coding one
hyphen24
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hi ! why you just go long positions? How you calculate your Stoploss? Kind regards good work
izciapp
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Hello,
I liked your transaction idea, I liked it very much.
I created an alarm on Tradingview to use it.
Unfortunately, the alarm mechanism does not work properly.
For example, I set an alarm for a symbol. Tradingview started to alert after a short while. Dozens of alarms were generated at the same time.
I want to give another example. I created an alarm for a symbol. There was a buy direction alert, but when I looked at the graph, I couldn't see any signs for buying. Probably redrawing
It would be great if you could make the alarm system fully. I really want to use this strategy and thank you again. :)
lolnopls
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@izciapp, this is due to pyramiding order. You can try disabling pyramiding order in strategy setting to receive one notification at a time when order has been bought/sold.
izciapp
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@lolnopls, I could not see the setting you mentioned in the code. can you help me?
@izciapp, Hi mate! How do you create buy direction alert in trading view? This is really helpful especially for newbie like me. hehe Thanks in advance!