Strategy based on Bollinger Bands and Williams %R indicators. Enters long when price is at lower band and Williams %R is oversold (< -80) Enters short when price is at upper band and Williams %R is overbought (> -20)
Bollinger bands expose volatility breakouts and Williams %R ensures momentum is extreme. Positions open when price closes outside a band with a matching Williams %R reading.
Best for volatility expansion traders. ATR stops handle adverse turns.
- Entry Criteria:
- Long: Close < LowerBand && WilliamsR < -80
- Short: Close > UpperBand && WilliamsR > -20
- Long/Short: Both
- Exit Criteria: Price returns to middle band
- Stops: ATR-based using AtrMultiplier
- Default Values:
- BollingerPeriod = 20
- BollingerDeviation = 2.0m
- WilliamsRPeriod = 14
- AtrPeriod = 14
- AtrMultiplier = 2.0m
- CandleType = TimeSpan.FromMinutes(5).TimeFrame()
- Filters:
- Category: Mean reversion
- Direction: Both
- Indicators: Bollinger Bands, Williams %R, R
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Mid-term
- Seasonality: No
- Neural Networks: No
- Divergence: No
- Risk Level: Medium