Strategy Premise
The upper, middle, and lower band. The middle band basically serves as a base for both the upper and lower. They are mainly used when determining when there are overbought or oversold levels. Selling when the price touches the upper band and buying when the price touches the lower band. The spacing between the lower, upper, and middle band is determined by volatility. The middle band consists of a 20 period moving average.
Strategy Logic
Long Entry: When Price touches the lower band and closes above it, Send LE.
Long Exit: Either when SL or Target is hit. If SL/TGT is not hit and Price touches Upper band and closes below it, send LX and SE
Short Entry: When Price touches the Upper band and closes below it, Send SE
Short Exit: Either when SL or Target is hit. If SL/TGT is not hit and Price touches lower band and closes above it, send SX and LE
Bollinger Band Strategy Parameters for TradingView Charts
1. Length(Mandatory): This is the number of bars used to calculated Ex: 14 à previous 14 candles are used.
2. Mult: Multiply By Length
3. Quantity: This is used to specify the trade quantity
4. Custom Stop Loss in Points: Movement in chart price against the momentum which will trigger exit
5.Custom Target in Points: Movement in chart price against the momentum which will trigger exit
TradingView Settings
STEP 1: Download The Pine Script Algo here
Step 2: Open desired Chart in trading View with normal Candlestick, Select the desired timeframe of the chart, Go to the pine editor section, remove the default code, paste the downloaded code, save the file, and to chart.
STEP 3: You can optimize your strategy by changing the input parameters, using “Settings” of Bollinger Band Strategy.
Setting Up Alert
Before setting up an alert make sure that You have selected the desired script, timeframe, strategy settings, API bridge is configured and running. Click in settings add alert and paste {{strategy.order.comment}} in message box.
Important: do not change any settings during live trading.
NOTE: The pinescript works both with webhook alerts (TV Pro plan) and normal popup alerts (TV free plan).
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