01Entry idea
Lower band bounce with confirmation
A mean-reversion long that uses the bands for context and a candle for the trigger.
VolatilityExpert Curated · Playbook
BB
Bollinger Bands
A volatility envelope built from a moving average and ±2 standard deviations, expanding and contracting as volatility changes.
Bollinger Bands plot a 20-period simple moving average as the middle band, with upper and lower bands at ±2 standard deviations of price. The bands widen during volatile moves and squeeze during calm periods — their width itself becomes a volatility signal.
Prices spend roughly 95% of the time inside the bands (by the properties of a normal distribution), so band touches aren't trade signals on their own — they're context. The most reliable setups combine band behaviour with confirmation: squeeze breakouts, lower-band touches plus bullish candles, or middle-band reclaims.
How to get in
Entry ideas
03ideas
02Entry idea
Squeeze breakout
A volatility-ignition entry that rides expansion out of a tight-band coil.
03Entry idea
Middle band reclaim
A trend-continuation long that buys when the short-term pullback exhausts.
How to get out
Exit ideas
03ideas
01Exit idea
Upper band tag exit
A statistical-stretch exit that locks gains when the move is 2 std dev extended.
02Exit idea
Middle-band revert
A patient mean-reversion exit that takes profit at the statistical expected value.
03Exit idea
Post-breakout squeeze collapse
A volatility-fade exit that closes when the expansion fuelling the trade dies out.
Other things it's good for
Utilities
02ideas
01Utility
Low-volatility regime filter
A regime filter that only fires when bands are compressed — squeeze conditions ripe for breakouts.
02Utility
Band-width compression trigger
A timing filter that fires only when current volatility has compressed to a multi-bar low.