This strategy is designed to **identify potential reversals** in Bitcoin’s price by leveraging **Bollinger Bands, RSI confirmation, and volume filtering**. It helps traders spot **overbought and oversold conditions**, allowing them to enter high-probability trades.
2️⃣ **SELL Signal (Short Entry) 🔻** - Price **touches or moves above the upper Bollinger Band** (indicating overbought conditions). - RSI (14) **rises above 70** (confirming overbought momentum). - Volume **is above the 20-period average** (to confirm strength).
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### **🔹 Why This Works?** ✅ **Mean Reversion Concept:** Assets tend to revert to their average price after extreme movements. ✅ **RSI Confirmation:** Ensures signals are backed by actual momentum shifts. ✅ **Volume Filter:** Reduces false signals caused by low liquidity. ✅ **Color-Coded Alerts:** Enhances readability for quick decision-making.
This strategy is ideal for **scalping or swing trading**, depending on the timeframe used. 📈
Would you like me to tweak it further or add stop-loss/take-profit levels? 🚀
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publications is governed by House rules. Bir grafikte kullanmak için favorilere ekleyebilirsiniz.
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