Rules for Sell Signal:
Price should hit Bollinger Band’s overbought level in two
places, one following the other. (Double top).
The double top should create a divergence in the RSI
indicator. If it didn’t, then it’s not a valid signal. Ignore it.
Re-enter
If the current trend is down, you can re-enter sell at any
overbought level of the Bollinger bands indicator. Your
stoploss should be the last support level. The same for up
trends, but your stoploss in this case should be the last
resistance level.
When you re-enter the market, make sure that the RSI
indicator is on your side. At or above 60 if the trend is up.
and at or below 40 if the trend is down.