Bollinger Bands with RSI Buy/Sell Signals (15 min)

The Bollinger Bands with RSI Buy/Sell Signals (15 min) indicator provides a multi-timeframe approach to identifying mean-reversion opportunities by combining volatility bands with momentum-based confirmation. This tool specifically targets potential reversal points by filtering Bollinger Band price crosses through the RSI to pinpoint overextended market conditions on the 15-minute timeframe.

Usage

The tool is primarily used to identify entries when the price is perceived to be overextended. By utilizing 15-minute data regardless of the chart's current resolution, it offers a consistent higher-timeframe perspective for intraday traders.

• Buy Signals: A green "Buy" label appears when the price crosses above the lower Bollinger Band (15m) while the RSI (15m) is below the oversold threshold (default 30).
• Sell Signals: A red "Sell" label appears when the price crosses below the upper Bollinger Band (15m) while the RSI (15m) is above the overbought threshold (default 70).
• Visual Aids: The indicator plots the 15-minute basis (middle), upper, and lower bands on the chart. Additionally, background highlights indicate zones where the 15-minute RSI is currently in overbought or oversold territory.

Details

This script leverages the request.security function to fetch Bollinger Band and RSI data from the 15-minute interval. The logic relies on the concept that a price move outside the bands represents high volatility, and a subsequent cross back inside—when accompanied by extreme RSI levels—suggests a high probability of a reversal toward the mean (the middle SMA).

The Bollinger Bands are calculated using a Standard Deviation multiplier applied to a Simple Moving Average. The RSI serves as a momentum filter to ensure that signals are only generated when the trend is potentially exhausted.

Settings

Bollinger Bands

• BB Length: The lookback period for the Simple Moving Average and Standard Deviation calculation (default is 20).
• BB Source: The price source used for the Bollinger Band calculations.
• BB Multiplier: The number of standard deviations for the width of the bands (default is 2.0).

RSI

• RSI Length: The lookback period for the Relative Strength Index calculation (default is 14).
• RSI Source: The price source used for the RSI calculation.
• RSI Overbought: The threshold above which the market is considered overbought (default is 70).
• RSI Oversold: The threshold below which the market is considered oversold (default is 30).

FAQ

How do I interpret the signals on lower timeframes? Since the indicator pulls data from the 15-minute timeframe, signals appearing on a 1-minute or 5-minute chart represent conditions met on the 15-minute interval. This allows for more precise entries on lower timeframes based on higher-timeframe structure.

Can I change the timeframe used for the calculations? In the current version, the timeframe is hardcoded to "15" minutes to ensure consistency with the intended strategy.

How can I access Bollinger Bands with RSI Buy/Sell Signals (15 min)? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.