Bollinger Band with RSI
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%
Bollingerbandstrategy
Beacon - Anthony Crudele's IndicatorBeacon uses the current volatility of the market based on your trading time frame to determine support and resistance levels, whether a trend is intact or ready to revert back in the range. One of the most difficult things I went through as a trader was determining whether we are in a trend day or if we are in grind up or grind down mode. I created Beacon to give me a simple look at the market to determine what type of environment we are in. I use Bollinger Bands (3 standard deviation) to determine the volatility cycle. Once the BB make peaks I took my Fibonacci Retracement tool and did a retracement from the peak high of the BB to the peak low. I use 70%, 50% and 30% for my support and resistance levels. I use those levels because I tested pretty much every percent level and those percentages averaged the highest performance on all tick charts and time charts. You can use Beacon on whatever time frame or tick chart you are trading on and it will determine that specific volatility cycle.
Bollinger Bands Strategy with Intraday Intensity IndexFor Educational Purposes. Results can differ on different markets and can fail at any time. Profit is not guaranteed.
This only works in a few markets and in certain situations. Changing the settings can give better or worse results for other markets.
This is a mean reversion strategy based on Bollinger Bands and the Intraday Intensity Index (a volume indicator). John Bollinger mentions that the Intraday Intensity Index can be used with Bollinger Bands and is one of the top indicators he recommends in his book. It seems he prefers it over the other volume indicators that he compares to for some reason. III looks a lot like Chaikin Money Flow but without the denominator in that calculation. On the default settings of the BBs, the III helps give off better entry signals. John Bollinger however is vague on how to use the BBs and it's hard to say if one should enter when it is below/above the bands or when the price crosses them. I find that with many indicators and strategies it's best to wait for a confirmation of some sort, in this case by waiting for some crossover of a band. Like most mean reversion strategies, the exit is very loose if using BBs alone. Usually the plan to exit is when the price finally reverts back to the mean or in this case the middle band. This can potentially lead to huge drawdowns and/or losses. Mean reversion strategies can have high win/loss ratios but can still end up unprofitable because of the huge losses that can occur. These drawdowns/losses that mean reversion strategies suffer from can potentially eat away at a large chunk of all that was previously made or perhaps up to all of it in the worst cases, can occur weeks or perhaps up to months after being profitable trading such a strategy, and will take a while and several trades to make it all back or keep a profitable track record. It is important to have a stop loss, trailing stop, or some sort of stop plan with these types of strategies. For this one, in addition to exiting the trade when price reverts to the middle band, I included a time-based stop plan that exits with a gain or with a loss to avoid potentially large losses, and to exit after only a few periods after taking the trade if in profit instead of waiting for the price to revert back to the mean.
Bollinger Bands Breakout StrategyBollinger Bands Breakout Strategy is the strategy version of Bollinger Bands Filter study version, which can be found under my scripts page. The strategy goes long when price closes above the upper band and goes short signal when price closes below the lower band.
Bollinger Bands is a classic indicator that uses a simple moving average of 20 periods, along with plots of upper and lower bands that are 2 standard deviations away from the basis line. These bands help visualize price volatility and trend based on where the price is, in relation to the bands.
The strategy doesn't take into account any other parameters such as Volume / RSI / Fundamentals etc, so user must use discretion based on confirmations from another indicator or based on fundamentals. The strategy results are based on purely long and short trades and doesn't take into account any user defined targets or stop losses.
The strategy works great when the price closes above/below upper/lower bands with continuation on next bar. It is definitely useful to have this strategy or the Bollinger Bands filter along with other indicators to get early glimpse of breach/fail of bands on candle close during BB squeeze or based on volatility .
This can be used on Heikin Ashi candles for spotting trends, but HA candles are not recommended for trade entries as they don't reflect true price of the asset.
The strategy settings default is 55 SMA and 1 standard deviation for Bollinger Bands filter, but these can be changed from settings.
It is definitely worth reading the 22 rules of Bollinger Bands written by John Bollinger if interested in trading Bollinger Bands successfully.
Short in Bollinger Band Down trend (Weekly and Daily) // © PlanTradePlanMM
// 6/14/2020
// ---------------------------------------------------
// Name: Short in Bollinger Band Down trend (Weekly and Daily)
// ---------------------------------------------------
// Key Points in this study:
// 1. Short in BB Lower band, probability of price going down is more than 50%
// 2. Short at the top 1/4 of Lower band (EMA - Lower line), Stop is EMA, tartget is Lower line; it matches risk:/reward=1:3 naturally
//
// Draw Lines:
// BB Lower : is the Target (Black line)
// BB EMA : is the initial Stop (Black line)
// ShortLine : EMA - 1/4 of (Stop-target), which matches risk:/reward=1:3
// Prepare Zone : between EMA and ShortLine
// shortPrice : Blue dot line only showing when has Short position, Which shows entry price.
// StopPrice : Black dot line only showing when has Short position, Which shows updated stop price.
//
// Add SMA50 to filter the trend. Price <= SMA, allow to short
//
// What (Condition): in BB down trend band
// When (Price action): Price cross below ShortLine;
// How (Trading Plan): Short at ShortLine;
// Initial Stop is EMA;
// Initial Target is BB Lower Line;
// FollowUp: if price moves down first, and EMA is below Short Price. Move stop to EMA, At least "make even" in this trade;
// if Price touched Short Line again and goes down, new EMA will be the updated stop
//
// Exit: 1. Initial stop -- "Stop" when down first, Close above stop
// 2. Target reached -- "TR" when down quickly, Target reached
// 3. make even -- "ME" when small down and up, Exit at Entry Price
// 4. Small Winner -- "SM" when EMA below Entry price, Exit when Close above EMA
//
// --------------
// Because there are too many flags in up trend study already, I created this down trend script separately.
// Uptrend study is good for SPY, QQQ, and strong stocks.
// Downtrend Study is good for weak ETF, stock, and (-2x, -3x) ETFs, such as FAZ, UVXY, USO, XOP, AAL, CCL
// -----------------------------------------------------------------------------------------------------------------
// Back test Weekly and daily chart for SPY, QQQ, XOP, AAL, BA, MMM, FAZ, UVXY
// The best sample is FAZ Weekly chart.
// When SPY and QQQ are good in long term up trend, these (-2x, -3x) ETFs are always going down in long term.
// Some of them are not allowed to short. I used option Put/Put spread for the short entry.
//
Buy in Bollinger Band uptrend (Weekly and Daily) // © PlanTradePlanMM 6/14/2020
// ---------------------------------------------------
// Name: Buy in Bollinger Band uptrend (Weekly and Daily)
// ---------------------------------------------------
// Key Points in this study:
// 1. Long in BB Upper band, probability of price going up is more than 50%
// 2. Buy at the bottom 1/4 of upper band (Upper line - EMA), Stop is EMA, tartget is Upper line; it matches risk:reward=1:3;
//
// Draw Lines:
// BB Upper : is the Target (Black line)
// BB EMA : is the initial Stop (Black line)
// BuyLine : EMA20 + 1/4 of (Target-Stop), which matches risk:/reward=1:3 naturally
// Prepare Zone : between EMA and BuyLine
// buyPrice : Blue dot line only showing when has long position, Which shows entry price.
// StopPrice : Black dot line only showing when has long position, Which shows updated stop price.
//
// Add SMA(50) to filter the trend. Price >= SMA, allow to long
//
// What (Condition): in BB uptrend band
// When (Price action): Price cross over BuyLine;
// How (Trading Plan): Buy at BuyLine;
// Initial Stop is EMA;
// Initial Target is BB Upper Line;
//
// FollowUp: if price moves up first, and the EMA is higher than Entry point, Use EMA as new stop. At least "make even" in this trade;
//
// Exit: 1. Initial stop -- "Stop" when down first, close below stop price.
// 2. Target reached -- "TR" when up quickly, Target reached
// 3. make even -- "ME" when small up and down, Exit at entry Price
// 4. Small Winner -- "SM" when EMA above Entry price, Exit when close below EMA, and higher than entry Price
//
// --------------
// Because there are too many flags in up trend study already, I will create a down trend script separately.
// Uptrend study is good for SPY, QQQ, and strong stocks.
// Downtrend Study is good for weak ETF, stock, and (-2x, -3x) ETFs, such as FAZ, UVXY, USO, XOP, AAL, CCL
// -----------------------------------------------------------------------------------------------------------------
// Back test Weekly and daily chart for SPY, QQQ
// If it will be a big Gap down or a big down move, stop at close price could be a big loss; But this way could avoid may noise, to stay in a trending position longer.
// When buy in trending move, the position could be hold for a big range.
// The best samples are SPY and QQQ daily chart.
//
// Better to use another way to verify the long term up trend first.
// For single stock, it is better shows more relative strength than SPY.
Bollinger Bands Strategy - CohenIndicator based on the “Prince of NY” strategy developed by Rodrigo Cohen .
It consists in the use of Bollinger Bands, combined with a coloring rule to indicate places of purchase and sale.
An entry signal is given when a candle close outside the band, where, if the next one closes inside, there is the entrance, looking for the MA or the other band.
Red candle - indicates a sell signal.
Green candle - indicates a buy signal.
Double Bollinger Bands StrategyThe Strategy involves two Bollinger Bands (BB) at a go.
One with Divergence of 1 and another 2.
Strategy:
When the price rides above the inner BB, buy, check if it rides above the second BB. Exit when price falls inside the Outer BB and enters the Inner BB.
When the price rides below the inner BB, buy, check if it rides below the second BB. Exit when price rises inside the Outer BB and enters the Inner BB.
Luckscout's Double Bollinger Bands StrategyLong Trade Setups:
To go long (to buy), you have to wait for one of the candlesticks to close above the BB upper band. (background color is green)
Short Trade Setups:
To go short (to sell), you have to wait for one of the candlesticks to close below the BB lower band. (background color is red)
How To Maximize Your Profit?
As I explained above, this trading system is good in catching the trends. Therefore, you’d better to take the advantage of the strong movements and maximize your profit.
When there is a strong trade setup, you can also take two positions with the same stop loss, when there is a trade setup based on the Double Bollinger Bands trading system. Set a 2 x SL target for the first position, and no target for the second one. If the first position hits the target, move the second’s position stop loss to breakeven and hold it (TLDR : Hold a sell as long as background is red)
In case of a long position, hold the second position as long as the candlesticks form between the BB1 and BB2 upper bands, or above the Bollinger Middle Band. Close the second position when candlesticks start crossing the BB1 upper bands, or when one of the candlesticks breaks below the Bollinger Middle Band . (TLDR : Holda buy as long as background is green)
Bollinger Band BreakoutIt is a long only strategy.
1. Buy when price breaks out of the upper band.
2. Exit has two options. Option 1 allows you to exit using lower band. Option 2 allows you to exit using moving average.
3. Option 1 preferred over option 2 if the instrument is highly volatile.
4. Slippage and commissions are not considered in the return calculation.
(Poshtrader) Bollinger Band SqueezeThe Bollinger Band Squeeze is a trading strategy designed to find consolidations with decreasing volatility. In its simplest form, this strategy is neutral and the ensuing break can be up or down. Traders, therefore, must employ other aspects of technical analysis to formulate a trading bias to act before the break or confirm the break. Acting before the break will improve the risk-reward ratio.
BBPivotIt can helps you to see BB pivots . It's based on bollinger bands .
Best Settings: (20,3) - (50,2)
Cheers :)
MTF Bollinger Bands - ModifiedModified version of tansancrypto's MTF Bollinger to Pinescript 4 and removed limiters on BB1/BB2 max Sigma values.
Original Script:
Bollinger bands/Lagging span crossHello my dear ambitious traders
I'm working hard this week to publish some great indicators this week and open sourced. Hope you'll enjoy, learn and use them.
This will be my greatest reward but comments showing appreciation are also very welcomed (actually likes too) :)
For today, I'll share a simple indicator but it's coming along with some insightful knowledge ^^
Anyway, I'm not here to ask you to this but to share a very cool indicator I made a few months ago and wanted to share for FREE with the community today
The indicator is related to this educational post : What-a-Bollinger-Bands-Lagging-span-cross-can-tell-us/
This trading technique was invented by Robbytrade, a famous french trader twitter.com
I wanted to have those visual signals on the chart so I coded it.
The advantage of being a developer is that you can litteraly code what you miss and get your life better in the process. The one that will find a way to code a new form of money will be rich... wait.... that guy is called Satoshi Nakamoto...
That's all for me today my friends
PS
Trying to update the Trade Manager shared yesterday with some cool features. More to come in the upcoming days
Enjoy
Dave
Stochastic Bollinger StrategyBollinger defaults = 20, close, 2
Stochastic defaults = 13, 5, 5
Buy Signal (GREEN triangle):
BULLISH candle formed
Candle OPEN is LESS than LOWER Bollinger Band
Stochastic (K) is LESS than 20
Sell Signal (RED triangle):
BEARISH candle formed
Candle OPEN is GREATER than UPPER Bollinger Band
Stochastic (K) is GREATER than 80
Read more about the strategy and where to set buy stops and sell stops here: swing-trading-strategies.com
RSI + BB (EMA) + Dispersion (2.0)First version here
Initial data:
1) RSI
2) Bollinger Bands (Basis - EMA )
3) Dispersion (around basis)
Signal for purchase: RSI crosses the dispersion zone upwards
Signal for sale: RSI crosses the dispersion zone downwards
Buffer zone: white area, it is not recommended to make transactions.
--- Add ( 02.10.2018 )
1) RSI lines (overbought / oversold) = 70 / 30. Сan be changed in the settings.
2) Alerts:
• RSI line crossover Dispersion Zone (green)
• RSI line crossunder Dispersion Zone (red)
Calendar's Bollinger BandsHI guys, I'm Calendar
I made my 2nd indicator for my followers.
This indicator made by merging 2 Bollinger Bands.(SDV =1, 2)
Bollinger Band Open Gap Alert V1This is the bare bones of what I'm trying to achieve through pine script. The purpose of the script is to:
1. On a 15m chart, calculate and plot upper & lower Bollinger bands and simple moving average of 20 periods. (DONE)
2. On a new day, when the first 15m candle of a session forms, I want to check if a) the low of the new candle is outside the upper Bollinger band (also known as an open gap up) or b) if the high of the candle is the outside the lower Bollinger band (also known as open gap down). In other words, I want to know if the Bollinger Bands are not touching the new candle's wicks/shadows. (DONE)
3. Alert me if the above happens. (DONE)
4. Run the indicator through an entire watch list. I'm not sure if that's possible, yet. (HELP)
For the above job, this is what I could come up with. I need guidance for the last step . And any suggestions for corrections or improvements would be greatly appreciated!
BB and Keltner SqueezeStrategy using the Bollinger band with the Keltner Channels . Watch for the Bollinger bands (blue/red lines) squeezing inside the Keltner Channels (pink dots) for a breakout - this could be up or down so use in conjunction with other indicators.
The blue band is the 2 standard deviation from price, the red is 3 standard deviations. With these, typically if the price bounces off the red then it will retrace a little, (although if there is a massive breakout/down this may not hold). When the bands narrow this is an indicator of consolidation, therefore with a likely upcoming breakup or down.
The pink dots are the Keltner Channels. The strategy says if the bollinger bands come inside the Keltner Channels then this is a strong indicator that the breakout is coming. Sometimes the length of time the squeeze occurs for is indicative of the length/strength of the breakout.
These indicators can be used on all timeframes but higher timeframes will be stronger and more reliable of a trend change.
BB and KeltnerStrategy using the Bollinger band with the Keltner Channels. Watch for the Bollinger bands (blue/red lines) squeezing inside the Keltner Channels (pink dots) for a breakout - this could be up or down so use in conjunction with other indicators.
Moving Average Cross and/or Bbands botHello TradingView and world!
This is one of our latest concepts for an actual bot builder. This script comes with a bunch of features that we're hoping will alleviate a lot of the stress and confusion around using and building strategies here on TV. Especially if the end-goal is to automate the strategies using Autoview.
This is a combination of 2 strategies, and gives you full control of each component within the script.
The 2 strategies are:
2 Moving Averages == if close is greater than moving average and moving average 1 is greater than moving average 2
Bolling Bands == if close is less than lower or greater than upper
Features / Settings included :
- Ability to change settings from a commodity market (default) to an altcoin or forex market.
- Backtest time period selector component
- Heiken Ashi Candles on/off
- Moving Average Strategy on/off
- Bollinger Bands Strategy on/off
- Both Moving Average settings can be adjusted
- Bollinger Bands length and multiplier can be adjusted.
- Pyramiding Greater Than, Equal To, or Less Than
- Trailing Stop with the ability to set a price in which the Trailing Stop activate
- Take Profit on/off and editable
- Stop Loss on/off and editable
- Margin Call on/off dependent on Leverage which is editable
- If pyramiding is used, the strategy will calculate and display your average on the chart
- Profit and Loss visuals added to the chart
You can watch a video here on how all the settings can be used and work together.
www.youtube.com
You can learn more about Autoview here:
autoview.with.pink
Get your invite and join us in slack here:
slack.with.pink
BB and RSI Indicator Alert v0.3 by JustUncleLI have just recently revised this indicator alert for public release. This is for the 60sec Bollinger Band break Binary Option traders.
This indicator alert is a variation of one found in a well known Broker's marketing videos. It uses Bollinger bands, RSI and moving averages. Included is a pre-warning alert condition. The strategy and settings are designed for 1min charts and Binary Options, but it could work for up to 15 min charts.
The default settings are BB(14,2) and RSI(11) with 75/25 Levels boundaries. To be a valid trade the RSI needs to be within 75/25 channel. The optional Market direction filter is enabled by default and is calculated by two EMA (200 and 50):
When 200ema rising and 50ema above 200ema then market going up.
When 200ema falling and 50ema below 200ema then market going down.
A potential Bollinger Break reversal trades identified by shapes: The purple diamond is the pre-warning purple alert and the green and red pointers with the PUT/CALL labels are the trade alerts. Make Binary Option trade in specified direction 60sec (or can also use 120sec trade without Martingale).
* Notes and Hints *
The original videos specified a Martingale money management strategy, be careful using this management. When I use Martingale I recommend go to 3 levels: 10, 25, 65 if no win at 65 stop trading this alert and start next alert back at 10, you should recovery loss by future wins given you are able to get a reasonable ITM rate with this strategy. Alternatively instead of using Martingale use 120sec Binary Option trade.
Be wary of break alerts on a steep Bollinger, they tend to keep running away for awhile, especially if steep on both sides of Bollinger channel.
As with most of this style of indicator the alert conditions will redraw until the candle is closed. For me this is okay, as it is an Alert is only to a potential trade and final decision to trade is made by me.
You need to practise this and be aware of market news, sessions boundaries, slow trading periods etc. Plan your periods of when you should trade, I prefer Asian session before lunch and London sessions.
