Bollinger + RSI, Double Strategy (by ChartArt) v1.1

This trading strategy combines the RSI (Relative Strength Index) and Bollinger Bands to enter trades when both indicators are in an overbought or oversold condition simultaneously. The strategy buys when the RSI is below 50 and the price crosses over the lower Bollinger Band, and sells when the RSI is above 50 and the price crosses under the upper Bollinger Band.

To trade this strategy manually:

• Indicators: Add RSI with a period of 6, and Bollinger Bands with a period of 200 and a standard deviation of 2.
• Entry Condition (Long): Enter a long position when the RSI is below 50 and the price crosses above the lower Bollinger Band.
• Entry Condition (Short): Enter a short position when the RSI is above 50 and the price crosses below the upper Bollinger Band.
• Exit Condition: Manually manage exits based on your risk tolerance or other reversal signals. Set stop-loss at the lower band for long positions and the upper band for short positions.

To enhance this strategy for manual trading, several refinements and additional criteria can be applied. The goal is to improve accuracy and profitability by incorporating extra layers of analysis and better risk management techniques. Here's a detailed plan:

• Refine Entry Criteria:
  • RSI Divergence: Instead of relying solely on the RSI being below 50 for long positions and above 50 for short positions, look for RSI divergence. Positive divergence (price decreases but RSI increases) can signal potential long entries, while negative divergence (price increases but RSI decreases) can signal potential short entries.
  • Confirm with Volume: Use volume indicators as a secondary confirmation to validate the signals. For instance, a long position is more reliable if it's accompanied by increasing volume, indicating stronger buying interest.
  • Multiple Time Frame Analysis: Check higher time frames to ensure that the long-term trend supports your trade direction. This can prevent getting caught in counter-trend trades.
• Enhance Exit Strategies:
  • Trailing Stop-Loss: Implement a trailing stop-loss to lock in profits as the trade moves in your favor. This dynamic stop-loss automatically adjusts to the highest price reached, protecting gains without needing constant manual adjustment.
  • Partial Profits: Consider taking partial profits at key resistance or support levels to secure earnings while still maintaining a portion of the position for further gains.
• Risk Management:
  • Position Sizing: Always use appropriate position sizing according to your risk tolerance. A common rule is to risk no more than 1-2% of your trading capital on a single trade.
  • Stop-Loss Placement: Place stop-loss orders just outside the Bollinger Bands to minimize potential losses. For long positions, the stop-loss should be slightly below the lower band; for short positions, slightly above the upper band.
• Combining with Other Indicators:
  • MACD: Adding the MACD (Moving Average Convergence Divergence) can help validate trade signals. A bullish MACD crossover can confirm long entries, while a bearish crossover can confirm short entries.
  • Moving Averages: Incorporate short-term and long-term moving averages to identify potential crossover signals. For example, a long entry is more favorable when the short-term moving average crosses above the long-term moving average.

By refining entry criteria, enhancing exit strategies, incorporating robust risk management, and combining additional indicators, this trading strategy can become more precise and adaptable to various market conditions.

This strategy is designed primarily for traders who prefer a structured, indicator-based approach to trading. It is well-suited for swing traders or short-term traders who are looking to capitalize on price movements within a few days to weeks. The strategy's reliance on the RSI and Bollinger Bands makes it ideal for traders who are comfortable with technical analysis and prefer to use well-established tools to make their trading decisions.

Best suited for:

• Technical Traders: Those who rely on chart patterns and technical indicators rather than fundamentals.
• Swing Traders: Traders who aim to capture medium-term trends and price swings.
• Trend-Following Traders: Those who aim to enter trades in the direction of the prevailing trend identified by RSI and Bollinger Bands.
• Part-Time Traders: Individuals who don't need to monitor their trades constantly but can check periodically for entry and exit signals based on defined criteria.

Key Takeaways:

• Strategy Overview: Combines RSI and Bollinger Bands to enter trades when both indicators show overbought or oversold conditions.
• How It Works: Buys when RSI is below 50 and price crosses above the lower Bollinger Band; sells when RSI is above 50 and price crosses below the upper Bollinger Band.
• Manual Trading: Use RSI with a 6-period and Bollinger Bands with a 200-period on TradingView. Manually enter and exit trades based on described criteria.
• Automation and Alerts: Use TradingView alerts to get notified when criteria are met, then make manual trades or automate with scripts.
• Refine Entry Criteria: Look for RSI divergence, confirm signals with volume, and perform multi-time-frame analysis.
• Enhance Exit Strategies: Implement trailing stop-loss, take partial profits at key levels to secure gains.
• Risk Management: Use appropriate position sizing (1-2% of capital per trade) and place stop-loss orders just outside Bollinger Bands.
• Combine Indicators: Add MACD for confirming signals and moving averages for spotting crossover opportunities.