A Two-of-Three Strategy Combining EMA Trend, RSI Reversals, and Bollinger Bands

Summary

This strategy combines three chart signals: the relationship between 50- and 200-period exponential moving averages, RSI(14) crossings of 30 or 70, and price crossing back through a 20-period Bollinger Band. A buy or sell signal occurs when at least two conditions point in the same direction on a bar. Users can choose long, short, or both directions, with optional chart markers and webhook alerts for trade events.

The document explains the signal rules and provides an implementation, but reports no performance results or empirical testing. It describes the approach as a way to seek agreement between trend, momentum, and price location, while noting that signal frequency and behavior vary by market and timeframe. The Bollinger and RSI triggers are reversals across specified levels; the source does not establish that they predict profitable reversals. Treat the strategy as a framework to inspect and test, with its performance subject to market conditions and implementation assumptions.

Key ideas

• A buy or sell signal requires at least two of three directional conditions to align on the same bar.
• The trend filter compares a 50-period EMA with a 200-period EMA.
• RSI crossings above 30 and below 70 provide bullish and bearish reversal signals.
• Price crossing back above the lower Bollinger Band or below the upper band supplies the location signal.
• The script supports long-only, short-only, or two-way trading and optional trade-event alerts.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.