RSI+BOLLINGER (LONG & SHORT)

The RSI+BOLLINGER (LONG & SHORT) indicator combines the Relative Strength Index (RSI) and Bollinger Bands to generate comprehensive long and short trading signals with built-in trend filters.

Usage

The script is designed to identify potential trend reversals and momentum shifts using a dual-confirmation approach.

• Long Signals (BUY): Triggered when the RSI value crosses above a user-defined oversold level (default: 29).
• Short Signals (SHORT): Triggered when the RSI value crosses below a user-defined overbought level (default: 71).
• Exits: Positions are managed using price action relative to the Bollinger Bands. A long position is closed when the price crosses below the upper Bollinger Band (C.L), while a short position is closed when the price crosses above the lower Bollinger Band (C.S).
• Mid-Line Signals: Optional circle markers indicate when price crosses the Bollinger Band basis (SMA), providing insight into intermediate trend shifts.

Details

The indicator incorporates a "Cascade Filter" logic for both long and short directions. This filter prevents "over-trading" in choppy markets by requiring a minimum price movement percentage before a new consecutive entry signal can be generated. For example, after a Buy signal, the script requires the price to drop by a specific percentage before another Buy signal is validated, ensuring entries are spaced out during significant moves.

Additionally, the script is optimized for automation, featuring JSON-formatted alerts that include ticker data, price levels, and current RSI/Bollinger values for seamless integration with third-party execution bots via webhooks.

Settings

Parámetros Generales

• Fuente de precio: Sets the calculation source (default: Close).
• Bollinger - Período: Determines the lookback period for the Bollinger Band basis.
• Bollinger - Desviación: Adjusts the multiplier for the upper and lower band standard deviations.
• RSI - Longitud: The lookback period for the RSI calculation.

Estrategia LONG

• RSI - Nivel de Compra: The threshold for RSI crossover to trigger a buy signal.
• Filtro Re-Compra: Caída Mínima (%): The percentage price must drop from the last entry before a new long signal is permitted.

Estrategia SHORT

• RSI - Nivel de Venta: The threshold for RSI crossunder to trigger a short signal.
• Filtro Re-Venta: Subida Mínima (%): The percentage price must rise from the last entry before a new short signal is permitted.

Visualización

• Mostrar Señales MID: Toggles the visibility of basis (SMA) crossover markers.
• DEBUG: Plotear Close del Símbolo: Diagnostic tool to display price data on the chart overlay.

FAQ

How do I use the automated alerts?

You can set up alerts using the alert condition menu. The script provides pre-configured JSON messages that include all necessary technical data for bot integration.

What is the purpose of the Cascade Filter?

The filter is designed to optimize signal quality by ensuring the script does not stack entries too closely together during high volatility unless the price has moved significantly.

How can I access RSI+BOLLINGER (LONG & SHORT)?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.