Bounce, Break, & Reject (BBR) Strategy

*Available with Premium subscriptions.
Description:
Back-testing shows outstanding and consistent results (SPY 5 minute chart used as an example)!
To obtain an “edge” traders must formulate a high probability strategy, but that requires clearer vision into the market price action. This strategy provides a picture of trading ranges subdivided into numerous technical levels utilizing, support & resistance zones, Bollinger Bands, previous day & premarket highs and lows, and fair value gaps (FVGs). Signals are generated while measuring stochastic, RSI, EMA positions, and crossings with BBR’s.

A possible path of technical levels where price action may bounce, break, and reject (BBR) from are depicted clearly. The strategy will apply visual signals of BBR’s and optimal conditions for entries. Bollinger Band band crossings are signaled for possible optimal exit levels when technical indicators support it. This strategy shows consistently outstanding results on a 5m SPY chart as an example, but no indicator nor strategy can provide guarantees of success due to the volatile dynamic nature of the stock markets, however the Bounce, Break, & Reject (BBR) Strategy will be an invaluable tool in tilting towards favorable probabilities.

Unique Features:

• Users can select an option to track 2 additional ticker in the background. QQQ and DIA are the defaults, but can be changed.
• The numerous important technical price levels are marked with lines and price labels.
• A concise trading module shows buy/sell signals at the chart top-right and marked at the chart bars too.
• Users can enter up to 4 custom levels simultaneously to integrate into the strategy action to generate signals.
• Signals are confirmed with Stochastic/RSI data from higher timeframes.
• Pre-market/previous day/current day highs/lows, intraday moving support/resistance levels, and Bollinger Bands are auto generated and labeled at the right of the chart.
• Fair value gaps, displacement, break of structure, liquidity, market shifts and volume imbalances are amongst the plotted chart levels or indications.

Indicator Options:
Go to indicator settings under the “Input” tab section to customize:

• Custom levels
• HOD/LOD/yHOD lines/ labels
• Additional ticker(s) tracking
• RSI
• Chart EMA options
• Moving average lengths and sources for signal calculations
• Moving average types (SMA, EMA, SMMA (RMA), WMA, and VWMA)
• Stochastic Oscillator
• Support and Resistance
• Parbolic SAR
• Trend Indicator
• Directional Movement Indicator (DMI)
• Alerts, displacements, volume imbalances, order blocks, liquidity, FVG, market structure, NWOG, and NDOG options
• Under the “Style” tab, show/hide options for Custom Levels, RSI signals, EMAs, HOD/LOD, Bollinger Bands, Support/Resistance, Trend, DMI signals with optional background color change, and BBR signals can be customized.

Usage Tips:

• When first installing onto a new chart, the chart will be compressed and will require expansion by spreading the chart scale that is usually on the right of chart.
• Backtesting: To backtest this script, “Order size” under the “Properties” tab must be change from “0”
• Apply this strategy to multiple timeframes to see the pattern progressions properly to aid in trading choices. Proper risk management and adequate experience are required to achieve long term trading success. This strategy is a tool designed to complement a trader’s intuition that only developes over much screen time and trading experience.
• Buy/Sell plots are generated when technical data aligns with bounces, breakouts, and rejects at PMH, PDH, yHOD, yLOD, support, resistance, and custom levels.
• “BBR” plots are generated when bounces, breaks, or rejects occur at the important primary levels mentioned above.
• *Stop loss order placement is highly encouraged for each trade entry.
• Parabolic SAR and DMI shows background fills/colors
• Additional confirmation comes with “Buy” or “Sell” and “BBR” plots for higher probability signals to add up to a full lot can be considered for a trade.
• Optimal exits can be considered to target potential yellow cross plots at either Bollinger Upper/Lower bands.
• A recommended exit strategy is to take partial profits on each push wave towards the target and fully out when reaching the target cross.

Chart Labels:

• “HOD“: high of day
• “LOD“:  low of day
• “PMH“:  pre-market high
• “PML“:  pre-market low
• “yHOD“:  yesterday’s high
• “yLOD“:  yesterday’s low
• “BB“, “BB Upper“, “BB Lower:  Bollinger Bands
• “Br“:  breaks
• “Double Br“:  double breaks
• “R“:  reversals (rejects and bounces)
• “DC“:  direction change
• “C“:  close short
• “E“:  exit long
• “Conf” (with color triangles):  stochastic confirmed signals
• “B“/”S” (with colored crosses):  ema8/ema13 crossings
• “Break Up“/”Break Dn“:  support/resistance crossings
• “Bull Wick” and “Bear Wick“:  bullish/bearish candles
• “FVG“:  fair value gap
• “BOS“:  break of structure
• “MSS“:  market structure shift
• “VI“:  volume imbalance
• “OB“:  order block candles
• Yellow Crosses:  Bollinger Band crossings

*This script is free to use with premium member access.

Disclaimer:
Achieving trading success hinges on adherence to your strategy, with indicators complementing rather than dictating trades. This script serves solely for informational and educational purposes and does not offer professional or financial advice. You assume full responsibility for evaluating the script output and its associated risks.

By utilizing the script, you agree to absolve StockWaver (TradingView user) of any liability for damages arising from decisions based on it. StockWaver is not affiliated with TradingView, Inc. Remember, experience and sound risk management are invaluable, and there’s no substitute for them, be it indicators or strategies. Thank you!