WJ Strategy B: Scored Oversold Entries with Moving Average Confirmation

Summary

This partial Pine Script describes a long-entry strategy that combines Bollinger Bands, three long-term simple moving averages, and RSI in a weighted oversold score. A close below the lower band contributes a point; trading below progressively longer averages contributes up to 1.5 points; and RSI thresholds contribute up to two points. Separate score thresholds activate two monitoring modes, with an entry considered after the score stops rising for a configurable number of days and price recovers above a short moving average.

The entry filter also considers the previous purchase price: when price is below that level, it requires closes above the entry average on both the current and prior bar; otherwise, one close above it is sufficient. The script sets fixed cash entries and allows substantial pyramiding. The supplied text ends before the order execution rules, so it does not establish the full entry, exit, or risk-management behavior. No performance results are provided; the strategy logic cannot be evaluated from this excerpt alone.

Key ideas

• The strategy adds Bollinger Band, moving average, and RSI signals into a weighted oversold score.
• A high score starts one of two monitoring modes, and entry timing depends on the score ceasing to rise.
• A short moving average recovery is required, with stricter confirmation when price is below the previous purchase price.
• The excerpt is incomplete and provides no performance evidence or full exit logic.

Tags

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