RETURN TO STRATEGIES

Bollinger Bands

High Risk
TYPE: VOLATILITY

Master volatility-based trading. Identify overbought/oversold conditions and exploit "Squeeze" breakouts.

Bands Monitor
CONNECTING...

BTCUSDT

$---

WAITING
PositionN/A
SqueezeINACTIVE

ETHUSDT

$---

WAITING
PositionN/A
SqueezeINACTIVE

Strategy Logic

Bollinger Bands consist of three lines. The connection between price and these bands determines volatility and potential breakouts.

The Components

  • Upper Band: Price target in uptrends, resistance in ranges.
  • Middle Band: 20-period Simple Moving Average. Support/Resistance backbone.
  • Lower Band: Price target in downtrends, support in ranges.

Trading the Squeeze

1
Identify Contraction

Bands narrow significantly, indicating low volatility. This is the calm before the storm.

2
Wait for Breakout

Price closes outside the bands. Volume MUST increase on the breakout candle.

3
Ride the Bands

Stay in the trade as long as price "walks" up the upper band (or down lower band).

Strategy Profile
Best Timeframe1H, 4H, 1D
Win RateVaried
ConditionAll Markets

The "Head Fake"

Prices often break out in one direction briefly before reversing hard in the true trend direction. Wait for candle close confirmation.