BB, RSI, Stochastic

Attached Image (click to enlarge)

1. Close < Lower Bollinger Band (50,2)
2. RSI(3) < 20
3. Stochastic %K(6,3,3) < 20

→ When this happens, set: BuyBreak = TRUE
B. Re‑Entry Condition (entry trigger)
A BUY entry is triggered when ALL of the following are true on a later closed candle:

1. Close ≥ Lower Bollinger Band (50,2)
2. RSI(3) > 20
3. Stochastic %K ≥ 40
4. BuyBreak == TRUE

→ When this happens: Open BUY Reset BuyBreak = FALSE
C. EMA Filter (optional, same for EA & indicator)
If enabled:

1. If EMA100 OR EMA200 is inside the red Bollinger Band (50,2) → Do NOT allow BUY entry → Also reset BuyBreak = FALSE

Sell
A. Break Condition (must happen first)
A SELL break is detected when ALL of the following are true on a closed candle:

1. Close > Upper Bollinger Band (50,2)
2. RSI(3) > 80
3. Stochastic %K(6,3,3) > 80

→ When this happens, set: SellBreak = TRUE
B. Re‑Entry Condition (entry trigger)
A SELL entry is triggered when ALL of the following are true on a later closed candle:

1. Close ≤ Upper Bollinger Band (50,2)
2. RSI(3) < 80
3. Stochastic %K ≤ 60
4. SellBreak == TRUE

→ When this happens: Open SELL Reset SellBreak = FALSE
C. EMA Filter (optional, same for EA & indicator)
If enabled:

1. If EMA100 OR EMA200 is inside the red Bollinger Band (50,2) → Do NOT allow SELL entry → Also reset SellBreak = FALSE

ADDITIONAL RULES (Shared by EA & Indicator)
1. All conditions use CLOSED candles only
No real‑time / tick‑based evaluation.
2. Break and re‑entry can occur ANY number of bars apart
There is no fixed bar distance between break and re‑entry.
3. Only one break flag per direction

1. BuyBreak = TRUE until a valid BUY entry or invalidation
2. SellBreak = TRUE until a valid SELL entry or invalidation

4. Break is invalidated if EMA filter blocks entry
If EMA filter is ON and EMA is inside BB(50,2), both flags reset.
5. Indicator marks the candle where the EA would enter
Vertical line = the candle where re‑entry conditions are met.

This is the exact logic BOTH EA and indicator must follow

1. Current price, and
2. Price from 70 bars ago (for a 70‑period SMA)

…you can visually see when the SMA is about to turn.

The 70‑period SMA is the average of the last 70 closes. Each new bar:

1. Adds the current price
2. Removes the price from 70 bars ago

So the direction of the SMA depends entirely on the relationship between these two numbers.
If current price > price 70 bars ago → SMA will start rising
If current price < price 70 bars ago → SMA will start falling

This means the “price 70 bars ago” acts like a pivot threshold for the moving average.

Plotting the current price and the 70‑bars‑ago price gives you:
1. Trend Strength

1. The bigger the gap between current price and the 70‑bars‑ago price, the stronger the trend and the steeper the SMA slope.

2. Early Warning of MA Reversals

1. When current price approaches the 70‑bars‑ago price, the SMA is losing momentum and may flatten soon.
2. When current price crosses it, the SMA must change direction shortly after.

3. Predictive Power
You can literally see future SMA turning points before they happen because the SMA is mathematically forced to follow the relationship between these two prices.

Practical Interpretation

1. If price is far above the 70‑bars‑ago price → strong uptrend, SMA rising
2. If price is far below → strong downtrend, SMA falling
3. If price is converging toward the 70‑bars‑ago price → trend weakening
4. If price crosses it → SMA direction change is imminent

This gives you a leading indicator for a traditionally lagging indicator.

In this example we would plot 1 sma shifted 70, we see the price 70 bars ago on the the current bars.

Even though an EMA doesn’t “drop” the price from 70 bars ago the way an SMA does, the direction of the EMA still depends entirely on whether the current price is above or below the EMA’s own value.

And the EMA’s value is itself a weighted blend of past prices — with the heaviest weight on the most recent ones and exponentially decreasing weights on older ones.

An EMA rises only when the current price is above the EMA. An EMA falls only when the current price is below the EMA.
But what determines whether the EMA is above or below its past values? The same principle as the SMA:

1. If current price is consistently higher than the prices from many bars ago, the EMA will be pulled upward.
2. If current price is consistently lower, the EMA will be pulled downward.

So while the EMA doesn’t have a single “drop‑off” price like the SMA, the relationship between current price and past prices still governs its slope.

I hope this maybe of help. If not, please delete this post as it is not my wish to disrupt your thread.

Example:

Attached Image (click to enlarge)

Attached File(s)

BB_RSI_Stoch_EAv2.ex4   17 KB | 61 downloads

Attached File(s)

BB_RSI_Stoch_Indicator_v2.ex4   16 KB | 79 downloads

1. Bollinger Bands (Period 50):
   1. Red bands: deviation 2 (main signal band)
   2. Yellow bands: deviation 3 (SL option 1)
   3. Dark orange bands: deviation 4 (SL option 2)
   4. Midline: SMA(50)

   
   

2. RSI: period 7
3. Stochastic: %K 14, %D 3, Slowing 3
4. Trend Filter:
   1. SMA(50) on H4 timeframe
   2. BUY only if price is above SMA50 H4
   3. SELL only if price is below SMA50 H4

   
   

2. BUY Logic
A. Break Condition (oversold breakout)
A BUY setup becomes “armed” when all are true on a closed candle:

1. Price closes below the lower red BB (50,2)
2. RSI(7) is below 30
3. Stochastic %K is below 20

→ Set BuyBreak = TRUE
B. Re‑Entry Condition (entry trigger)
A BUY entry occurs when all are true on a later closed candle:

1. Price closes back above or on the lower red BB
2. RSI(7) is above 30
3. Stochastic %K is 40 or higher
4. BuyBreak == TRUE
5. Price is above SMA50 on H4 (trend filter)

→ Open BUY → Reset BuyBreak = FALSE
C. BUY Stop Loss Options (handled automatically by EA)
The EA uses the input SL_Mode to choose the stop loss:

1. SL_Mode = 0: SL = lower yellow BB (50,3)
2. SL_Mode = 1: SL = lower dark orange BB (50,4)

You do not choose manually — the EA applies the selected mode.
D. BUY Take Profit Options (handled automatically by EA)
The EA uses the input TP_Mode to choose the take profit:

1. TP_Mode = 0: TP = midline BB (SMA50)
2. TP_Mode = 1: TP = upper red BB (50,2)

Again, the EA applies this automatically.
3. SELL Logic
A. Break Condition (overbought breakout)
A SELL setup becomes “armed” when all are true on a closed candle:

1. Price closes above the upper red BB (50,2)
2. RSI(7) is above 70
3. Stochastic %K is above 80

→ Set SellBreak = TRUE
B. Re‑Entry Condition (entry trigger)
A SELL entry occurs when all are true on a later closed candle:

1. Price closes back below or on the upper red BB
2. RSI(7) is below 70
3. Stochastic %K is 60 or lower
4. SellBreak == TRUE
5. Price is below SMA50 on H4 (trend filter)

→ Open SELL → Reset SellBreak = FALSE
C. SELL Stop Loss Options (handled automatically by EA)
The EA uses SL_Mode:

1. SL_Mode = 0: SL = upper yellow BB (50,3)
2. SL_Mode = 1: SL = upper dark orange BB (50,4)

D. SELL Take Profit Options (handled automatically by EA)
The EA uses TP_Mode:

1. TP_Mode = 0: TP = midline BB (SMA50)
2. TP_Mode = 1: TP = lower red BB (50,2)

4. Additional EA Rules

1. Uses closed candles only
2. Only one trade per symbol at a time
3. Spread filter
4. Trading hours filter
5. All indicator settings are user‑configurable
6. No EMA100/200 used anywhere

5. Indicator Behaviour

1. Uses the exact same logic as the EA
2. Draws a vertical line on the candle where the EA would enter
3. Cleans up its own objects when removed
4. HistoryBars input controls how far back it scans