RSI trend - Bollinger dips and rallies Strategy


The RSI is a quality indicator for a trending market.

 

Indicators which are used: Relative Strength Index, Bollinger Band (all default)

 

Timeframe: 4 Hr and 30 Min (you can also use 30 Min and 5 Min)

 

It is very simple: add the bollinger band to all timeframes but it is needed in 30 Min timeframe. In the 4 Hr add the RSI. When RSI is above 50, there is an uptrend and below 50 is a downtrend. Then move to 30 Min to have a look for entries.

 

 

While in the 30 Min timeframe in an uptrend, you should wait for the price to close below the lower band of the Bollinger, then a close above the lower band you will open a long-order.

 

 

While in the 30 Min timeframe in a downtrend you should wait for the price to close above the upper band of the Bollinger, then a close below the upper band you will open a short-order.