BB + Stochastic Oscillator + ATR / Owl of Profit

Bollinger Bands + Stochastic Oscillator + ATR Strategy

This strategy combines Bollinger Bands, the Stochastic Oscillator, and Average True Range (ATR) for trading opportunities based on volatility, momentum, and trend confirmation.

Features
Bollinger Bands:

Calculates dynamic upper and lower bands around a moving average.
Identifies overbought and oversold price levels.
Stochastic Oscillator:

Detects momentum shifts in overbought (>80) and oversold (<20) regions.
%K and %D crossings confirm entry points.
ATR Integration:

Measures market volatility.
Confirms signals by requiring ATR to exceed a threshold for valid trades.
Strategy Logic
Buy Condition:

Price closes below the lower Bollinger Band, signaling oversold conditions.
Stochastic %K crosses above %D in the oversold region (<20).
ATR is above the calculated ATR threshold, confirming sufficient volatility.
Sell Condition:

Price closes above the upper Bollinger Band, signaling overbought conditions.
Stochastic %K crosses below %D in the overbought region (>80).
ATR is above the calculated ATR threshold.
Exit Strategy:

Uses ATR-based Stop Loss and Take Profit levels for dynamic risk management.
Visualization
Bollinger Bands: Blue basis, red upper band, green lower band, and light blue fill.
Stochastic Oscillator: Purple %K, orange %D, with overbought (80) and oversold (20) levels.
ATR: Visualized with a blue line and a gray ATR threshold for better analysis of market conditions.
Customization
Bollinger Bands:

Default Length: 20
Default Multiplier: 2.0
Stochastic Oscillator:

%K Length: 14
%D Smoothing: 3
ATR:

Default Length: 14
Default Multiplier: 1.5
Stop Loss and Take Profit:

Based on ATR for dynamic trade exits.
This strategy is ideal for traders looking to capitalize on volatility and momentum signals, with added confirmation from ATR to filter out low-volatility environments.

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Happy Trading! 😊