RSI Bollinger Band Signals with Fractal Breakouts and SAR Trailing
Summary
This strategy uses Bollinger Bands calculated on RSI to identify a potential long setup. When RSI crosses above its upper band, the system waits for price to be below a fractal level, then places a buy signal if price breaks through that level. The intended entry therefore combines an oscillator event with a price breakout trigger rather than buying immediately when RSI crosses its band.
After entry, the position is trailed using Parabolic SAR values. A pending buy order is canceled if RSI falls below 30 before the order triggers. The document describes the signal rules and attributes the original idea and code to different contributors, but provides no backtest, market, timeframe, or risk and sizing details. It specifies buy-side conditions only, so its behavior in falling markets and the effectiveness of the fractal and SAR rules cannot be assessed from the description.
Key ideas
- Bollinger Bands are applied to RSI to identify an upper-band break.
- A buy setup requires price to be below a fractal level before breaking above it.
- An open position is trailed using Parabolic SAR values.
- A pending buy is canceled if RSI falls below 30 before activation.
- The document gives no performance results or broader risk-management rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.