Tristan's Tri-band Strategy

Tristan's Tri-band Strategy - Confluence Trading System
Strategy Overview:

• This strategy combines three powerful technical indicators - RSI, Williams %R, and Bollinger Bands - into a single visual trading system. Instead of cluttering your chart with separate indicator panels, all signals are displayed directly on the price chart using color-coded gradient overlays, making it easy to spot high-probability trade setups at a glance.
  

How It Works:
The strategy identifies trading opportunities when multiple indicators align (confluence), suggesting strong momentum shifts:
📈 Long Entry Signals:

• RSI drops to 30 or below (oversold)
  
• Williams %R reaches -80 to -100 range (oversold)
  
• Price touches or breaks below the lower Bollinger Band
  
• All three conditions must align during your selected trading session
  

📉 Short Entry Signals:

• RSI rises to 70 or above (overbought)
  
• Williams %R reaches 0 to -20 range (overbought)
  
• Price touches or breaks above the upper Bollinger Band
  
• All three conditions must align during your selected trading session
  

Visual Indicators:

• (faint) Green gradients below candles = Bullish oversold conditions (buying opportunity)
  
• (faint) Red/Orange gradients above candles = Bearish overbought conditions (selling opportunity)
  
• Stacked/brighter gradients = Multiple indicators confirming the same signal (higher probability) will stack and show brighter / less faint
  
• Blue Bollinger Bands = Volatility boundaries and mean reversion zones
  

Exit Strategy:

• Long trades exit when price reaches the upper Bollinger Band OR RSI becomes overbought (≥70)
  
• Short trades exit when price reaches the lower Bollinger Band OR RSI becomes oversold (≤30)
  

Key Features:
✅ Session Filters - Trade only during NY (9:30 AM-4 PM), London (3 AM-11:30 AM), or Asia (7 PM-1 AM EST) sessions
✅ No Repainting - Signals are confirmed on candle close for realistic backtesting and live trading
✅ Customizable Parameters - Adjust RSI levels, BB standard deviations, Williams %R periods, and gradient visibility
✅ Visual Clarity - See all three indicators at once without switching between panels
✅ Built-in Alerts - Get notified when entry and exit conditions are met
How to Use Effectively:

• Choose Your Trading Session - For day trading US stocks, enable only the NY session. For forex or 24-hour markets, select the sessions that match your schedule.
  
• Look for Gradient Stacking - The brightest, most visible gradients occur when both RSI and Williams %R signal together. These are your highest-probability setups.
  
• Confirm with Price Action - Wait for the candle to close before entering. The strategy enters on the next bar's open to prevent repainting.
  
• Respect the Bollinger Bands - Entries occur at the outer bands (price extremes), and exits occur at the opposite band or when momentum reverses.
  
• Backtest First - Test the strategy on your preferred instruments and timeframes. Works best on liquid assets with clear trends and mean reversion patterns (stocks, major forex pairs, indices).
  
• Adjust Gradient Visibility - Use the "Gradient Strength" slider (lower = more visible) to make signals stand out on your chart style.
  

Best Timeframes: 5-minute to 1-hour charts for intraday trading; 4-hour to daily for swing trading (I have also found the 3 hour timeframe to work really well for some stocks / ETFs.)
Best Markets: Liquid instruments with volatility - SPY, QQQ, major stocks, EUR/USD, GBP/USD, major indices
Risk Management: This is a mean reversion strategy that works best in ranging or choppy markets. In strong trends, signals may appear less frequently. Always use proper position sizing and stop losses based on your risk tolerance.
----------------------------------------------
Note: Past performance does not guarantee future results. This strategy is provided for educational purposes. Always backtest thoroughly and practice proper risk management before live trading.RetryClaude can make mistakes. Please double-check responses. Sonnet 4.5