Bollinger Band Exhaustion with RSI and Divergence Signals

Summary

The visible portion describes a public educational strategy built around Bollinger Band exhaustion, RSI filters, and bearish divergence logic. It provides configurable long-and-short, long-only, or short-only modes, with an option to require the strategy to be flat before entering in the opposite direction. The shown defaults include a Bollinger length of 265 and multiplier of 3.3, main and fast RSI lengths of 14 and 7, and MACD settings for divergence checks. A bearish divergence setup looks for price making a new high without confirmation from RSI or MACD over a configurable lookback.

Risk controls include optional stop-loss and time-stop settings; the stop-loss option is off by default in the visible inputs. The excerpt ends before the full entry and exit rules, test results, and remaining parameters appear, so the exact signal combination and performance cannot be established from this text. The author also notes that the public script omits private risk, execution, allocation, routing, and production components, and that hypothetical backtests may differ from live trading.

Key ideas

• The public strategy combines Bollinger Band exhaustion with RSI filters and divergence logic.
• The shown divergence setup compares new price highs with weaker RSI or MACD confirmation.
• Users can choose long-and-short, long-only, or short-only operation.
• Stop-loss and time-based exits are configurable, with stop loss disabled by default in the visible inputs.
• The excerpt omits the complete rules and results, and the public version excludes production trading components.

Tags

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