Bollinger Band and RSI Mean-Reversion Long Strategy

Summary

This TradingView strategy seeks long entries when price closes below the lower Bollinger Band and the 14-period RSI is below 30. The bands use a 10-period simple moving average as their basis and a two-standard-deviation width. A position is closed when price reaches or exceeds the basis, making the exit a return toward the moving average rather than a fixed target.

The document includes an open-source Pine Script implementation and describes the setup as an attempt to buy oversold conditions ahead of a recovery. It names no measured backtest results, sample period, or risk-adjusted performance, so the stated rationale is not evidence of profitability. The rules are long-only and contain no explicit stop-loss or position-sizing method. The accompanying description advises testing and risk management, and suggests the approach is most suited to oscillating, volatile markets; performance may differ in persistent trends or across assets and timeframes.

Key ideas

• A long entry requires a close below the lower band and RSI below 30.
• The Bollinger Bands use a 10-period average and a width of two standard deviations.
• The strategy closes the long position when price reaches the middle band.
• The document supplies executable Pine Script but no reported performance results.
• No explicit stop-loss or position-sizing rule is included.

Tags

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