Simple but solid mean reversion indicator with sl and tp levels. Most of the code is based on the built in bollinger bands script. Designed for scalping 1-5 minute timeframes.
The indicator consists of two sets of bollinger bands .
Price has to close below the lower (fast) bollinger band , above the moving average of the (slower) bollinger band .
If price now closes above the lower (fast) bb, the indicator draws a label at the open of the next candle (which would be a potential entry point). Take profit becomes the upper bollinger band , stop loss the same distance below the open of the candle.
I've built in a simple backtesting function that calculates the potential win/loss-ratio. Loss and profit levels are 1:1. Exit strategy could be improved on.
Adjusting the lengths depending on the asset proves to be a good idea.
The slower bollinger bands can help to identify ranging markets and/or trends following regular bollinger bands theory.
Feel free to comment with any changes that you'd like to be made.
The indicator consists of two sets of bollinger bands .
Price has to close below the lower (fast) bollinger band , above the moving average of the (slower) bollinger band .
If price now closes above the lower (fast) bb, the indicator draws a label at the open of the next candle (which would be a potential entry point). Take profit becomes the upper bollinger band , stop loss the same distance below the open of the candle.
I've built in a simple backtesting function that calculates the potential win/loss-ratio. Loss and profit levels are 1:1. Exit strategy could be improved on.
Adjusting the lengths depending on the asset proves to be a good idea.
The slower bollinger bands can help to identify ranging markets and/or trends following regular bollinger bands theory.
Feel free to comment with any changes that you'd like to be made.