The DZ TDI RSI with Bollinger Bands is a trading template that can be used for two different strategies: trend and reversal. It utilizes the Bollinger Bands with two different deviations and the DZ TDI RSI (Polycromatic Dynamoic Zone) adaptive indicator based on the TDI. The time frame for this template can be applied to various markets including currency pairs, indices, gold, and oil.
In trend trading, the strategy involves buying when the price breaks the upper band of the Bollinger Band with a deviation of 1.5 and the DZ TDI RSI crosses upward the line.
The strategy involves selling when the price breaks the lower band of the Bollinger Band with a deviation of 1.5 and the DZ TDI RSI crosses downward the line.
In reversal trading, the strategy involves buying when the price touches the lower Bollinger Bands with deviation 4 and the TDI crosses upward the line, and selling when the price touches the upper Bollinger Bands with deviation 4 and the TDI crosses downward the line.
Buy Signal Generation with DZ TDI RSI with Bollinger Bands System
To generate a buy signal using the DZ TDI RSI with Bollinger Bands System, the price must break above the upper band of the Bollinger Bands with a deviation of 1.5, and the DZ TDI RSI adaptive indicator must cross upwards. The initial stop loss is placed at the middle line of the Bollinger Bands, and the profit target can be predetermined or set when the TDI crosses in the opposite direction.
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Sell Signal Generation with DZ TDI RSI with Bollinger Bands System
The sell conditions of the DZ TDI RSI with Bollinger Bands System are triggered when the price breaks the lower band of the Bollinger Band with a deviation of 1.5 and the DZ TDI RSI adaptive indicator crosses downward the line. The initial stop loss is placed at the middle lines of the Bollinger Bands and the profit target can be predetermined or taken when the TDI crosses in the opposite direction.
