BB + RSI Double Cross Strategy

Bollinger Bands + RSI Double Strategy indicator

A dual-confirmation mean-reversion indicator combining Bollinger Bands and RSI to identify high-probability reversal points.

Based on ChartArt's strategy concept (v1.1)

Overview

This indicator generates signals only when both RSI momentum and Bollinger Bands price action confirm simultaneously. The dual-filter approach significantly reduces false signals compared to single-indicator systems.

Signal Logic

Long Entry: RSI crosses above the trigger level (default 50) while price crosses above the lower Bollinger Band. This combination indicates oversold conditions with confirmed bullish momentum shift.

Short Entry: RSI crosses below the trigger level while price crosses below the upper Bollinger Band. This identifies overbought conditions with confirmed bearish momentum shift.

Trend Markers

The indicator displays additional trend markers when price re-enters the Bollinger Bands channel:

• Bearish marker appears when price drops back below the upper band while the basis line is declining
• Bullish marker appears when price rises back above the lower band while the basis line is rising

Parameters

• RSI Period: Lookback period for RSI calculation (default: 6)
• BB Period: Lookback period for Bollinger Bands SMA basis (default: 200)
• BB StdDev: Standard deviation multiplier for band width (default: 2.0)
• RSI Trigger Level: Crossover threshold for RSI signals (default: 50)
• Show Signal Labels: Toggle visibility of L/S entry markers
• Show Trend Markers: Toggle visibility of trend direction arrows

Display

• Bollinger Bands overlay on price chart with filled zone
• Clear L (Long) and S (Short) labels at signal points
• Real-time info panel showing current RSI value, BB basis, and cumulative signal counts
• Optional trend direction markers

Recommended Use

Best suited for swing trading on higher timeframes (4H, Daily) where the 200-period Bollinger Bands provide meaningful support/resistance levels. The short RSI period (6) ensures responsive momentum detection while the long BB period filters for significant price extremes.