RSI stands for Relative Strength Index. Bollinger Bands stands for a channel open by standard deviation values plotting upper, lower lines. Double RSI with Bollinger bands adapted Bollinger bands to RSI not using overlay mode. It tries to filter fake signals while giving more good signals according to volatility even below overbought areas or above oversold areas. This way you can use greater values for RSI, like 25 and 100, increasing smoothness with less market noise. We added an extra gap spacer to smooth Bollinger bands while widening the channel with a lower multiplier.
I found better results when Fast RSI crosses back into Bollinger bands channel.
You can play with the following settings:
• Source Close is the most used • Fast RSI length Default to 25 • Slow RSI length Default to 100 • RSI Smoothing To filter out some graphic noise • RSI Overbought, Oversold Regular overbought, oversold lines handled by a single value. For 70/30, set it to 20 although with longer RSI something around 15 is enough. • Bollinger Spacer Ads thickness to the channel with lower multiplier • Bollinger Length Regular Bollinger length applied to slow RSI • Bollinger Multiplier Regular Bollinger multiplier applied to slow RSI
Disclaimer: For study purposes only, trading without a good risk management can be regrettable, do your own research, always add confirmations, use it as is, at your own risk.
```
//@version=4
study("Double Bottom Pattern", overlay=true)
// Define inputs
lookback = input(title="Lookback Period", type=input.integer, defval=20)
threshold = input(title="Minimum Percentage Change", type=input.float, defval=0.5)
// Define variables
double_bottom = 0.0
// Calculate the double bottom pattern
low1 = low[lookback]
low2 = low[lookback-1]
if low1 == low2
double_bottom := high[lookback+1] > ((high[lookback] - low[lookback]) * (1 + threshold)) ? low1 : 0.0
// Plot the double bottom pattern
plot(double_bottom, style=plot.style_circles, color=color.green, linewidth=2)
```