Mean Reversion Strategy Using RSI and Bollinger Bands
Mean reversion: RSI < 30 + lower BB touch on stocks above 200 SMA. Enter first green candle. Exit at middle BB or RSI 50. 70%+ win rate on S&P 500 stocks.
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ORIGINAL POST
Mean Reversion Strategy Using RSI and Bollinger Bands
Mean reversion strategy for swing trading. When RSI drops below 30 AND price touches lower Bollinger Band on a stock that is above its 200-day SMA (meaning the long-term trend is up), it is a high-probability bounce setup. Enter on the close of the first green candle after both conditions are met. Exit at the middle BB or when RSI reaches 50. Win rate over 70% on S&P 500 stocks.
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