Bollinger Band Reversal Signals with RSI and Range Filters

Summary

This forex strategy looks for reversals after price reaches an outer Bollinger Band. A long setup requires a recent lower-band touch and oversold RSI, followed by price closing back above the band but below the basis, rising RSI, and a bullish candle. Shorts apply the mirrored conditions at the upper band. An ADX threshold filters for ranging conditions; optional volume and session filters can further restrict entries, and a cooldown limits repeated signals.

Stops and targets are set as ATR multiples, with an optional partial exit that takes some profit at a nearer target and manages the remainder toward a farther target with an optional trail. The script describes its asymmetric target and stop distances as intended to favor a higher win rate, but the supplied document gives no backtest results or evidence of profitability. Performance may depend heavily on market regime, instrument, timeframe, execution costs, and parameter choices; the indicator logic alone does not establish an edge.

Key ideas

• The strategy seeks a move back toward the Bollinger basis after a recent outer-band touch.
• RSI must have recently reached an extreme and then begin recovering before entry.
• An ADX ceiling is used to avoid taking mean-reversion signals in stronger trends.
• ATR multiples define the stop and profit levels, with optional partial exits and trailing management.

Tags

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