This strategy blends Bollinger Bands with the Supertrend indicator to pinpoint entries during strong directional moves. Bollinger Bands gauge volatility expansion while the Supertrend line tracks the overall trend and acts as a trailing stop.
A long trade triggers when price closes above the upper Bollinger Band and remains above the Supertrend line, confirming momentum and trend alignment. A short trade occurs when price closes below the lower band while staying under the Supertrend level. Trades are exited once price crosses back through the Supertrend, indicating momentum has faded.
Because the system waits for breakouts beyond normal volatility, it suits traders looking to capture sustained runs rather than quick reversals. The Supertrend stop dynamically adjusts to market swings, helping manage risk without manual intervention.
Entry Criteria:
Long: Close > upper Bollinger Band && Close > Supertrend
Short: Close < lower Bollinger Band && Close < Supertrend
[]Long/Short: Both sides.
[]Exit Criteria:
Long: Exit when price crosses below Supertrend
Short: Exit when price crosses above Supertrend
[]Stops: Yes, via Supertrend trailing stop.
[]Default Values:
BollingerPeriod = 20
BollingerDeviation = 2.0m
SupertrendPeriod = 10
SupertrendMultiplier = 3.0m
CandleType = TimeSpan.FromMinutes(15)
[*]Filters:
Category: Trend
Direction: Both
Indicators: Bollinger Bands, Supertrend
Stops: Yes
Complexity: Intermediate
Timeframe: Intraday
Seasonality: No
Neural networks: No
Divergence: No
Risk Level: Medium