Extreme Strength Reversal Strategy with RSI and Bollinger Bands

Summary

This MetaTrader 5 Expert Advisor describes a countertrend entry method that combines an extreme RSI reading with a close beyond a Bollinger Band, then looks for a reversal candlestick pattern as confirmation. The stated defaults use RSI period 14 with oversold and overbought thresholds of 20 and 80, and Bollinger Bands with a period of 20 and deviation of 2. A trade is intended to fade unusually extended price moves after the reversal pattern appears.

Orders use user-configured fixed stop-loss and take-profit distances; the listed defaults are 150 and 300 pips. The advisor allows one position per symbol at a time and includes configurable lot size and a unique identifier. These are strategy specifications, not evidence of profitability: the document supplies no backtest results, market or timeframe guidance, execution assumptions, or treatment of costs. The fixed distances and thresholds may behave differently across instruments and volatility regimes.

Key ideas

• The strategy seeks countertrend trades when RSI is extreme and price breaches an outer Bollinger Band.
• A reversal candlestick pattern is required to confirm an entry.
• The listed RSI thresholds are below 20 and above 80, with Bollinger settings of 20 periods and 2 deviations.
• The advisor uses fixed stop-loss and take-profit distances and permits one position per symbol.
• The description provides no backtest evidence or instrument-specific validation.

Tags

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