This strategy is designed for identifying and executing long trades based on Bollinger Bands and RSI. It aims to capitalize on potential oversold conditions and subsequent price recovery.
Key Features: - Bollinger Bands (10,2): The strategy uses Bollinger Bands with a 10-period moving average and a multiplier of 2 to define price volatility. - RSI Filter: A trade is only triggered when the RSI (14-period) is below 30, ensuring entry during oversold conditions. - Entry Condition: A long trade is entered immediately when the price crosses below the lower Bollinger Band and the RSI is under 30. - Exit Condition: The position is exited when the price reaches or crosses above the Bollinger Band basis (20-period moving average).
Best Used For: - Identifying oversold conditions with a strong potential for a rebound. - Markets or assets with clear oscillations and volatility e.g., BTC.
**Disclaimer:** This strategy is for educational purposes and should be used with caution. Backtesting and risk management are essential before live trading.