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