Range Reversal Signals After Flat Bollinger Band Touches

Summary

This excerpt presents a range-reversal strategy that looks for price to touch a Bollinger Band while the band basis is considered flat. Flatness is assessed by comparing the moving average with its value over a lookback, scaled by ATR. After a lower or upper band touch, a configurable bar window remains open for a reversal signal, provided flat conditions still hold. The script imports a signal library and offers pinbar, engulfing, and fractal options, although the visible entry signal assignments use pinbar signals.

The excerpt begins defining prospective stops and risk from the closing price, but ends before the complete entry, sizing, exit, and execution rules are shown. It includes configurable risk percentage, stop offset, breakeven offset, and minimum reward-to-risk inputs, but this portion does not establish how all are applied. No backtest results or market-specific evidence are included, so the available text supports understanding the setup conditions rather than judging performance.

Key ideas

• The strategy seeks reversals after an outer Bollinger Band touch during a flat regime.
• Flatness is measured by the change in the band basis relative to ATR.
• A signal window starts at a qualifying band touch and remains valid only while flatness persists.
• The script exposes several reversal pattern options, but the visible buy and sell triggers reference pinbar signals.
• The excerpt omits the complete trade management logic and reports no performance evidence.

Tags

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