Bollinger Band + RSI + ADX + MACD + Heikinashi

The Bollinger Band + RSI + ADX + MACD + Heikinashi indicator tool provides a multi-indicator long-only strategy designed to identify high-probability mean-reversion and momentum entries during specific trading sessions.

Usage

The strategy enters a long position when several technical conditions align simultaneously:

• Mean Reversion: The candle low must be below the lower Bollinger Band, indicating a potential oversold or stretched condition.
• Momentum Confirmation: The Relative Strength Index (RSI) must be above a user-defined comparator level (default 39.2) to ensure some bullish presence exists.
• Trend Strength: The Average Directional Index (ADX) must be above its comparator (default 14) to confirm sufficient market participation.
• Trend Direction: The MACD line must be above its Signal line, and the current price must be above the Heikin Ashi open to filter for bullish price action.

The script includes automated exit logic:

• Stop Loss: Calculates the tighter of two distance-based levels (0.22% from the low or 0.32% from the close).
• Take Profit: Targets the higher of the upper Bollinger Band or a 0.75% price increase from the entry.

Details

This script integrates several core technical analysis concepts into a singular execution framework. It utilizes a custom ADX calculation and fetches Heikin Ashi data via request.security to provide a directional filter that is smoother than standard Japanese candlesticks. The strategy is also session-aware, meaning it will only evaluate entries and maintain positions during the "Trading Session" defined in the inputs. Any open positions are automatically closed at the end of the session.

Settings

Bollinger Band

• Bollinger Band Source: The price source used for the basis calculation (default is High).
• Bollinger Band Length: The lookback period for the SMA basis.
• Bollinger Band Std Dev: The multiplier for the standard deviation bands.

RSI

• RSI Source: The price source for RSI calculation.
• RSI Length: The lookback period for the RSI.
• RSI Comparator: The threshold the RSI must exceed to allow a trade.

ADX

• ADX Length: The lookback period for the ADX calculation.
• ADX Comparator: The minimum ADX value required to enter a trade.

MACD

• MACD Source: The price source for the MACD calculation.
• MACD Fast: The period for the fast EMA.
• MACD Slow: The period for the slow EMA.
• MACD Signal: The period for the signal line SMA.

FAQ

How do I access the Bollinger Band + RSI + ADX + MACD + Heikinashi?

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

Is this strategy suitable for shorting?

No, this specific implementation is a long-only strategy and does not include logic for short sell entries.

Why does the background color change?

The highlighted background indicates the "Trading Session" defined in the settings. The strategy will only execute trades while this session is active.