Bollinger RSI Reversal Script

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-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW Bollinger RSI Reversal v1.0.0
--
-- Combines Bollinger Bands (20, 2) with RSI (14). A close outside a band shows
-- price stretched away from its average, RSI in its extreme zone shows momentum
-- is stretched too, and a candle that closes back inside the bands in the
-- opposite colour shows the first reaction.
--
-- HIGHER: the previous candle closed below the lower band while RSI was below
--         30, and this candle closes back inside the bands as a bullish candle.
-- LOWER:  the previous candle closed above the upper band while RSI was above
--         70, and this candle closes back inside the bands as a bearish candle.
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.

instrument {
    name = "IQOW Bollinger RSI Reversal",
    short_name = "IQOW BB RSI",
    overlay = true
}

input_group {
    "1. Bollinger Bands",
    bb_period = input (20, "Period", input.integer, 2, 200),
    bb_deviation = input (2, "Deviation", input.double, 0.5, 5, 0.1)
}

input_group {
    "2. RSI",
    rsi_period = input (14, "RSI period", input.integer, 2, 100),
    oversold_level = input (30, "Oversold level", input.double, 5, 45, 1, false),
    overbought_level = input (70, "Overbought level", input.double, 55, 95, 1, false)
}

input_group {
    "Display and advice",
    bands_visible = input { default = true, type = input.plot_visibility },
    middle_visible = input { default = true, type = input.plot_visibility },
    signals_visible = input { default = true, type = input.plot_visibility },
    advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}

input_group {
    "Colors",
    band_color = input { default = "#56CEFF", type = input.color },
    middle_color = input { default = rgba(255, 255, 255, 0.35), type = input.color },
    band_fill_color = input { default = rgba(86, 206, 255, 0.06), type = input.color },
    band_width = input { default = 1, type = input.line_width },
    higher_color = input { default = "#25E154", type = input.color },
    lower_color = input { default = "#FF6C58", type = input.color },
    signal_text_color = input { default = "#FFFFFF", type = input.color }
}

-- Bollinger Bands: SMA basis with sample standard deviation, as in the
-- official indicator.
basis_line = sma (close, bb_period)
band_offset = stdev (close, bb_period) * bb_deviation
upper_band = basis_line + band_offset
lower_band = basis_line - band_offset

rsi_value = rsi (close, rsi_period)

local upper_now = get_value (upper_band, nil)
local lower_now = get_value (lower_band, nil)
local upper_previous = get_value (upper_band [1], nil)
local lower_previous = get_value (lower_band [1], nil)
local rsi_previous = get_value (rsi_value [1], nil)
local close_now = get_value (close, nil)
local close_previous = get_value (close [1], nil)
local open_now = get_value (open, nil)

local levels_are_valid = oversold_level < 50 and overbought_level > 50

local data_is_ready =
    levels_are_valid and
    upper_now ~= nil and
    lower_now ~= nil and
    upper_previous ~= nil and
    lower_previous ~= nil and
    rsi_previous ~= nil and
    close_now ~= nil and
    close_previous ~= nil and
    open_now ~= nil

-- Previous candle closed outside a band with RSI in its extreme zone.
local stretched_down = data_is_ready and close_previous < lower_previous and rsi_previous < oversold_level
local stretched_up = data_is_ready and close_previous > upper_previous and rsi_previous > overbought_level

-- Event: this candle closes back inside the bands in the opposite colour.
local closes_inside = data_is_ready and close_now >= lower_now and close_now <= upper_now

higher_setup = conditional (stretched_down and closes_inside and close_now > open_now)
lower_setup = conditional (stretched_up and closes_inside and close_now < open_now)

-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
    get_value (higher_setup [1], false) and
    not get_value (higher_setup [2], false)
)

confirmed_lower = conditional (
    get_value (lower_setup [1], false) and
    not get_value (lower_setup [2], false)
)

if bands_visible then
    fill (upper_band, lower_band, "Bollinger area", band_fill_color)
    plot (upper_band, "Upper band", band_color, band_width)
    plot (lower_band, "Lower band", band_color, band_width)
end

if middle_visible then
    plot (basis_line, "Bollinger middle", middle_color, 1)
end

if signals_visible then
    plot_shape (
        confirmed_higher,
        "BB RSI HIGHER",
        shape_style.triangleup,
        shape_size.small,
        higher_color,
        shape_location.belowbar,
        -1,
        "HIGHER",
        signal_text_color
    )

    plot_shape (
        confirmed_lower,
        "BB RSI LOWER",
        shape_style.triangledown,
        shape_size.small,
        lower_color,
        shape_location.abovebar,
        -1,
        "LOWER",
        signal_text_color
    )
end

-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
    get_value (confirmed_higher, false) and
    not get_value (confirmed_lower, false) then
    advise (advice.buy)
elseif advice_enabled and
    get_value (confirmed_lower, false) and
    not get_value (confirmed_higher, false) then
    advise (advice.sell)
else
    advise (advice.neutral)
end