Bollinger Bands allows you to define the relative boundaries of the price high and low range.
The main use of the Bollinger Band is reversal trading. The concept of the indicator assumes that the price is within the boundaries of the lines 95% of the time, and the remaining 5% goes beyond the boundaries. According to the concept, if the price reaches the upper or lower band, it is very likely to reverse, since it has already reached the end of the band border.
The RSI Oscillator, which is a relative strength index, varies on a scale from 0 to 100. When it enters overbought (70 to 100) and oversold (0 to 30) zones, a price reversal is likely.
The use of Bollinger Bands with RSI in a single combination reduces the likelihood of a false breakout and allows you to determine the most optimal points for entering the market.
The indicator can use two strategies that can be selected in the settings.
The first strategy (Aggressive mode) assumes that the price goes beyond the Bollinger Bands and reaches the target RSI levels (30 or 70), a signal to open a position appears when the price goes outside the Bollinger Bands.
In the second strategy (Conservative mode), unlike the first, a signal to open a position appears when the price crosses the middle line BB.
The indicator is implemented as a scanner that searches for trading signals on all symbols and timeframes available in the MetaTrader 4 (MT4) trading terminal. The indicator contains a dashboard on which all information about the current status of detecting signals of a trading strategy is presented. The transition to the detected signal is carried out in one click, after which the chart is automatically updated without the need to open it in a new window.
The indicator provides the ability to change the target levels, periods and calculation methods of the Bollinger Bands and RSI indicators in accordance with your individual preferences.
The indicator contains the alerts function for the found signals. The settings of the feature allow to turn on / off notifications and choose between email and / or mobile notifications.
The indicator can use two strategies – Aggressive and Conservative.
In the Aggressive strategy, a signal to open a position appears when the price goes beyond the upper or lower boundary of the BB and the RSI is in the overbought or oversold zone (70 or 30).
In the Conservative strategy, a signal to open a position appears when the price crosses the middle line BB (moving average) after the price has gone beyond the upper or lower boundaries of the BB and the RSI was in the overbought or oversold zone.
The dashboard shows information about the current status of detecting signals of a trading strategy.
The cell of the asset / timeframe contains information about the direction of the trade (BUY or SELL) and the serial number of the bar (the number of bars back) on which the signal was detected.
The color of the cell indicates the direction of the trade (BUY – green, SELL – red) and changes the saturation of the main color depending on how much the distance of the bars from the last bar on which the signal was detected increases.
By clicking any assets on the left side of the dashboard, traders can switch between them to fastly choose a currency pair or other financial instrument, which gives a signal to buy or sell.
The indicator has the following parameters:
assets – selection of assets to search for signals.
enable_M1 – enable_MN – include / exclude timeframes (from a minute to a month) to search for signals via them.
max_bars – the maximum number of bars back, by which the scanner will search for signals. The parameter limits the number of calculations to speed up the indicator.
enable_alert – the option enables / disables alerts.
enable_email – allows you to send email alerts.
enable_mobile – allows you to send alerts to your mobile device.
calculation_mode – selection of the strategy mode (Aggressive / Conservative).
Bollinger Bands and RSI settings – change target levels, periods and calculation methods for Bollinger Bands and RSI indicators.
We can also turn the indicator into an Expert Advisor (trading robot) with an extended set of custom functions (stop loss, take profit, trailing stop, risk management parameters, trading time limit, and others).
Request a free consultation from our team of professional programmers and find out the cost and timing of your project development.
Nordman Algorithms is not liable for any risk that you face using the software. Please, use the software on your own responsibility. The software is coded in accordance with a common known concept and Nordman Algorithms does not guarantee accuracy or trading performance of the software signals.
