MA Bollinger Bands + RSI (Study)

The MA Bollinger Bands + RSI (Study) indicator provides a comprehensive alerting system based on a combination of Bollinger Bands, various Moving Averages, and the Relative Strength Index (RSI). It is designed to identify mean reversion and momentum signals while offering extensive filtering options for volatility, trend direction, and time sessions.

Usage

This tool identifies potential long and short entries when price action interacts with Bollinger Band extremes and is confirmed by RSI momentum.

• Long Signals: Occur when the price crosses over the lower Bollinger Band while the RSI has recently crossed above a neutral level (e.g., 50).
• Short Signals: Occur when the price crosses under the upper Bollinger Band while the RSI has recently crossed below a neutral level.
• Volatility Filter: When enabled, the script prevents entries during periods of extreme price expansion to avoid "catching falling knives" or entering into blow-off tops.
• Trend Filter: Users can restrict trades to only follow a higher-timeframe EMA trend, ensuring the strategy aligns with the broader market direction.

Details

The indicator calculates a central Moving Average (selectable between SMA, EMA, WMA, VWMA, and HMA) and applies standard deviation bands to create Bollinger Bands. The RSI confirmation uses a "lookback" window, meaning the RSI neutral cross does not have to happen on the exact same bar as the band touch, allowing for more flexible signal capture.

The script also includes internal logic to track stop losses and take profit levels, which are used to generate specific "Re-Entry" alerts. If a stop loss is hit, the script can be configured to alert the user for a new entry in the same direction if the conditions remain favorable.

Settings

Trade Directions

• Strategy takes Long/Short trades: Toggles the visibility and alerts for specific trade directions.
• Allow Re-Entry after Stops: If enabled, signals in the same direction can trigger after a stop loss event.

Stop Loss

• Enable MAE Stop Loss: Activates a stop loss based on a percentage distance from the entry price.
• Enable ATR Trailing Stop: Uses the Average True Range to create a dynamic trailing stop.

Take Profit

• Enable Target Parameter: Activates a fixed percentage-based take profit level.
• Allow Re-Entry after Take Profit: Allows new signals in the same direction after a target has been hit.

Volatility

• Enable Volatility Parameter: Filters out signals during extreme volatility peaks.
• Vol. Factor: Adjusts the sensitivity of the volatility filter.

MABB & RSI

• MA Type: Choose the base moving average for the Bollinger Bands.
• StDev. Multiplier: Adjusts the width of the bands.
• RSI Cross Lookback: Defines how many bars back to check for an RSI neutral crossover.

FAQ

How do I use the alerts for automated trading?

You can set alerts by selecting the "MA Bollinger Bands + RSI (Study)" in the alert dialog. Use the "Once per bar close" option to ensure signals are confirmed by price action before triggering.

Why are some signals filtered out?

Signals may be hidden if you have the Volatility Filter, Trend Parameter, or Date/Time filters enabled. Check your settings to ensure your current chart data meets all active criteria.

How can I access this tool?

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