Bollinger Break +RSI Overbought reversal Scanner
| Code | Price | Close Price Latest | Open Price Latest | RSI | Bollinger Lower | Chart | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| ATGL | 614.95 | 614.95 | 613.95 | 29.78 | 616.36 | ||||||
| ALOKINDS | 7.73 | 7.73 | 7.60 | 7.58 | 8.15 |
Bollinger Break + RSI Oversold Bullish Reversal Strategy
Overview
The Bollinger Break + RSI Oversold Bullish Reversal Strategy combines two popular technical indicators:
- Bollinger Bands – measure market volatility and provide dynamic support and resistance levels.
- RSI (Relative Strength Index) – measures momentum and helps identify overbought and oversold conditions.
Individually, both indicators can provide useful signals. When combined, they can help identify potential bullish reversal opportunities.
Core Conditions
A bullish reversal signal is generated when all of the following conditions are met:
- Previous candle closes below the Lower Bollinger Band.
- Previous candle RSI is below 30 , indicating an oversold condition.
- Latest candle closes above the Lower Bollinger Band , indicating a possible reversal back inside the bands.
Manually scanning for stocks with a perfectly aligned and rising Bollinger Break + RSI Oversold Bullish Reversal Strategy can be tedious. TSR Custom Screener automatically scans multiple stocks and timeframes, displaying screener results with TSR Charts side-by-side, helping traders quickly identify and analyze potential uptrend opportunities.
Additional Confirmation
The setup becomes stronger when one or both of these confirmations are present:
- Latest candle volume is higher than the previous candle volume.
- The latest candle is a strong bullish candle, such as:
When to Avoid the Setup
Avoid taking the trade when:
- Bollinger Bands are too narrow, indicating very low volatility.
- The price has already moved significantly before the signal.
- The setup occurs just before major market news or events, which can cause sudden volatility.
Target
Primary Target: Middle Bollinger Band
A trailing stop-loss can be used to capture additional gains if the price continues to move upward.
Stop-Loss
Stop-Loss: Lower Bollinger Band
The stop-loss can be placed around the Lower Bollinger Band to protect against a failed reversal.
Risk-Reward Ratio
Recommended Risk-Reward Ratio: 1:2
Important Note
This strategy is a technical screening method and does not guarantee profitable trades. Use proper risk management and consider other market factors before making any trading decision.
Fine Tune : You can customise these screeners by clicking on 'Fine Tune Filter' Option
Caution : All these screeners are crafted based on some historical scenarios which may / may notbe applicable here. We recommend to fine tune them according to current market conditions or seek expert advise before taking any decision.