Strategy combining Bollinger Bands and ADX indicators. Looks for breakouts with strong trend confirmation.
Price movements outside Bollinger bands are filtered through ADX for strength. Trades engage when a band break coincides with high ADX.
Useful for volatility surges accompanied by strong trends. Stop size is driven by ATR.
Entry Criteria:
Long: Close < LowerBand && ADX > AdxThreshold
Short: Close > UpperBand && ADX > AdxThreshold
[]Long/Short: Both
[]Exit Criteria:
Bollinger mean reversion
[]Stops: ATR-based using AtrMultiplier
[]Default Values:
BollingerPeriod = 20
BollingerDeviation = 2.0m
AdxPeriod = 14
AdxThreshold = 25m
AtrMultiplier = 2.0m
CandleType = TimeSpan.FromMinutes(5).TimeFrame()
[*]Filters:
Category: Mean reversion
Direction: Both
Indicators: Bollinger Bands, ADX
Stops: Yes
Complexity: Intermediate
Timeframe: Mid-term
Seasonality: No
Neural Networks: No
Divergence: No
Risk Level: Medium