Multi-Indicator Bollinger Bands Trading Strategy
This script is an advanced trading strategy that combines the use of Bollinger Bands, Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators to make buy and sell decisions. The script first plots the Bollinger Bands on the chart, with the upper and lower bands of two different standard deviations (1st and 2nd StdDev) outlined with two different colors. The strategy then uses the Bollinger Bands to enter long positions when the closing price crosses above the upper band and enter short positions when the closing price crosses below the lower band.
The strategy also uses the RSI and MACD indicators as additional confirmation for buy and sell decisions. The script uses RSI to confirm long entry when RSI crosses above 70 and short entry when RSI crosses below 30. The script uses MACD to confirm long entry when the MACD crosses above the signal line and short entry when the MACD crosses below the signal line.
The script also includes code for exiting positions based on different conditions. Long positions are closed when RSI crosses below 50 or the closing price crosses below the middle band of the Bollinger Bands, short positions are closed when RSI crosses above 50 or the closing price crosses above the middle band of the Bollinger Bands. Overall, this script is a comprehensive trading strategy that incorporates multiple technical indicators for making buy and sell decisions and managing positions.
The strategy also uses the RSI and MACD indicators as additional confirmation for buy and sell decisions. The script uses RSI to confirm long entry when RSI crosses above 70 and short entry when RSI crosses below 30. The script uses MACD to confirm long entry when the MACD crosses above the signal line and short entry when the MACD crosses below the signal line.
The script also includes code for exiting positions based on different conditions. Long positions are closed when RSI crosses below 50 or the closing price crosses below the middle band of the Bollinger Bands, short positions are closed when RSI crosses above 50 or the closing price crosses above the middle band of the Bollinger Bands. Overall, this script is a comprehensive trading strategy that incorporates multiple technical indicators for making buy and sell decisions and managing positions.