💻 RSI Dual-Band Reversal Strategy (Hacker Mode)

This 💻 RSI Dual-Band Reversal Strategy (Hacker Mode) is a mean-reversion trading strategy built on the Relative Strength Index (RSI) indicator.
It identifies potential trend reversals when price momentum reaches extreme overbought or oversold levels — then enters trades expecting the price to revert.
USDCNH USDCNH EURUSD BTCUSD GBPMXN XAUUSD
⚙️ Strategy Concept

The RSI measures market momentum on a scale of 0–100.

When RSI is too low, it signals an oversold market → potential buy.

When RSI is too high, it signals an overbought market → potential sell.

This strategy sets two reversal zones using dual RSI bands:

Zone RSI Range Meaning Action
Upper Band 80–90 Overbought Prepare to Sell
Lower Band 10–20 Oversold Prepare to Buy
🧩 Code Breakdown
1. Input Parameters
rsiLength = input.int(14)
upperBandHigh = input.float(90.0)
upperBandLow = input.float(80.0)
lowerBandLow = input.float(10.0)
lowerBandHigh = input.float(20.0)


You can adjust:

RSI Length (default 14) → sensitivity of the RSI.

Upper/Lower Bands → control when buy/sell triggers occur.

2. RSI Calculation
rsi = ta.rsi(close, rsiLength)


Calculates the RSI of the closing price over 14 periods.

3. Signal Logic
buySignal = ta.crossover(rsi, lowerBandHigh)
sellSignal = ta.crossunder(rsi, upperBandLow)


Buy Signal: RSI crosses up through 20 → market rebounding from oversold.

Sell Signal: RSI crosses down through 80 → market turning from overbought.

4. Plotting

RSI line (lime green)

Bands:

🔴 80–90 (Sell Zone)

🟢 10–20 (Buy Zone)

Gray midline at 50 for reference.

Triangle markers for signals:

🟢 “BUY” below chart

🔴 “SELL” above chart

5. Trading Logic
if (buySignal)
strategy.entry("Buy", strategy.long)

if (sellSignal)
strategy.entry("Sell",
BTCUSD
strategy.short
XAUUSD
)


Opens a long position on a buy signal.

Opens a short position on a sell signal.

No explicit stop loss or take profit — positions reverse when an opposite signal appears.

🧠 How It Works (Step-by-Step Example)

RSI drops below 20 → oversold → buy signal triggers.

RSI rises toward 80 → overbought → sell signal triggers.

Strategy flips position, always staying in the market (either long or short).

📈 Visual Summary

Imagine the RSI line oscillating between 0 and 100:

100 ────────────────────────────────
90 ───── Upper Band High (Sell Limit)
80 ───── Upper Band Low (Sell Trigger)
50 ───── Midline
20 ───── Lower Band High (Buy Trigger)
10 ───── Lower Band Low (Buy Limit)
0 ────────────────────────────────


When RSI moves above 80 → SELL

When RSI moves below 20 → BUY

⚡ Strategy Profile
Category Description
Type Mean Reversion
Entry Rule RSI crosses up 20 → Buy
Exit/Reverse Rule RSI crosses down 80 → Sell
Strengths Simple, effective in sideways/range markets, minimal lag
Weaknesses Weak in strong trends, no stop-loss or take-profit logic
💡 Suggested Improvements

You can enhance this script by adding:

Stop loss & take profit levels (e.g., % or ATR-based).

Trend filter (e.g., trade only in direction of 200 EMA).

RSI smoothing to reduce noise.