Bollinger Band Uptrend Dip Strategy Criteria

This is slightly updated from my first Uptrend Dip post—namely, the RSI criterion checkpoint:

ü  Simple Moving Average (SMA) in an upward or neutral direction

ü  Upper Bollinger Band increases in value as the price either crosses above the SMA line or increases after a previous down closing price (all above the SMA line)

ü  Relative Strength Index (RSI) has an upward trend

To determine if the RSI is in an upward trend, I draw an imaginary or actual line from the last three or four (not an exact science) dip points. I draw a separate imaginary or actual line for the last three or four peak points. (Some dips and peaks will occur in between the major ones. Their direction is important, but I mainly focus on the obvious ones.)

As an example, I drew on the RSI trend lines for my 1-year BAC (Bank of America) chart.

If the trend lines create a lane that points upward, and an RSI and price dip occurs within that lane, I would consider buying. If the trend lines create a lane pointing downward, I wouldn’t consider buying.

I’m curious to see if following this strategy will lead to GREEN!