One-Minute Bollinger Band Countertrend Scalping with RSI and Stochastic

Summary

This strategy looks for short-term reversals after a sharp move beyond a Bollinger Band. A close crossing above the upper band, combined with overbought RSI and Stochastic readings, triggers a short setup; a crossing below the lower band with both oscillators oversold triggers a long setup. An optional EMA filter gates short and long signals according to the relative position of the fast and slow averages.

Positions are limited to one at a time and use ATR-based stop and target levels, with an additional close condition if price moves beyond a wider band. The script includes configurable indicator lengths and thresholds, chart plots, and alert signals. It provides a rule set rather than reported performance evidence. The minute-scalping premise is not supported by backtest results here, and the EMA filter's description is somewhat inconsistent with the conditions implemented. Execution costs and rapid price changes may also matter greatly at this timeframe.

Key ideas

• A band-crossing signal is paired with both RSI and Stochastic extremes to identify potential reversals.
• The optional EMA filter permits shorts when the fast EMA is below the slow EMA and longs when it is above.
• ATR multiples define stop-loss and take-profit levels relative to the average entry price.
• A wider Bollinger Band breach can trigger an early close, but the document reports no performance results.

Tags

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