Bollinger Band and RSI Reversal Entries with an EMA Trend Filter
Summary
This strategy pairs Bollinger Bands with RSI to identify possible reversals and uses an optional long-term EMA to filter trades by trend direction. Traders can choose long-only, short-only, or two-sided operation and select either a band-touch entry or a reclaim entry. Touch signals require price outside a band alongside an oversold or overbought RSI reading; reclaim signals require price to cross back inside the band while RSI recovers from the relevant threshold. A separate live-watch condition flags setups near a band before the confirmed entry criteria occur.
The script specifies commission assumptions, position sizing, and configurable take-profit and stop-loss percentages, though the supplied excerpt ends after entry orders and does not show the exit implementation. It contains no backtest period, performance statistics, or evidence that the signals are profitable. The EMA filter may also exclude reversals against the prevailing trend, while band and RSI thresholds remain parameter choices requiring validation across markets and timeframes.
Key ideas
- Bollinger Band extremes and RSI thresholds define touch-based reversal entries.
- A reclaim option waits for price to return inside a band as RSI moves back through its threshold.
- An optional EMA filter permits longs above the EMA and shorts below it.
- Live-watch conditions identify setups near a band before confirmed entries occur.
- The excerpt does not include exit orders or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.