Bollinger Bands + RSI Strategy

//version=5
strategy("Bollinger Bands + RSI Strategy", overlay=true,
description="This is a trading strategy based on Bollinger Bands and RSI. The strategy generates buy and sell signals based on price action and market momentum. It buys when the price crosses above the lower Bollinger Band while the RSI is below 30 (indicating oversold conditions). It sells when the price crosses below the upper Bollinger Band while the RSI is above 70 (indicating overbought conditions). Positions are closed when the price crosses the middle Bollinger Band (the moving average).")

// Bollinger Bands parameters
length = input.int(20, title="Bollinger Bands Length")
src = input(close, title="Source")
mult = input.float(2.0, title="Bollinger Bands Multiplier")

basis = ta.sma(src, length)
dev = mult * ta.stdev(src, length)
upper_band = basis + dev
lower_band = basis - dev

// RSI parameters
rsi_length = input.int(14, title="RSI Length")
rsi = ta.rsi(src, rsi_length)

// Plot Bollinger Bands
plot(upper_band, color=color.red, linewidth=2, title="Upper Bollinger Band")
plot(lower_band, color=color.green, linewidth=2, title="Lower Bollinger Band")
plot(basis, color=color.blue, linewidth=1, title="Middle Band")

// Buy Condition
buy_condition = ta.crossover(close, lower_band) and rsi < 30
if buy_condition
strategy.entry("Buy", strategy.long)

// Sell Condition
sell_condition = ta.crossunder(close, upper_band) and rsi > 70
if sell_condition
strategy.entry("Sell", strategy.short)

// Exit Conditions (optional: use the middle Bollinger Band for exits)
exit_condition = ta.cross(close, basis)
if exit_condition
strategy.close("Buy")
strategy.close("Sell")

// Optional: Plot RSI for additional insight
hline(70, "Overbought", color=color.red)
hline(30, "Oversold", color=color.green)
plot(rsi, color=color.purple, title="RSI", linewidth=1, offset=-5)