Bollinger Bands

Also known as: Bollinger Bands (BB), BB, Bandas de Bollinger, Bollinger Band

Bollinger Bands plot a moving average (usually 20-period) with upper and lower bands at two standard deviations, expanding and contracting with volatility. They are used both for mean reversion (fading band touches) and breakout trading (the squeeze).

Here you'll find every Bollinger Bands strategy decoded on Strategy Decoder, each with its full logic: band settings, entry triggers, stop placement, targets, and generated Pine Script for TradingView backtesting.

Recurring approaches in this collection: buying lower-band touches in established uptrends, squeeze breakouts when volatility contracts, band-walk trend riding, and combinations with RSI or volume for confirmation.

Frequently asked questions

What specifically are Bollinger Bands in technical analysis?

Bollinger Bands are a volatility-based technical analysis tool consisting of a middle moving average and two outer bands calculated via standard deviations. They create a dynamic range that expands and contracts based on market fluctuations. Unlike static support and resistance levels, these bands adapt to current market conditions, helping traders visualize where price sits relative to its recent average. Most traders use the default setting of a 20-period moving average with bands set two standard deviations away, covering approximately 95% of price action.

How do traders interpret the Bollinger Band Squeeze?

A Bollinger Band Squeeze occurs when the upper and lower bands tighten significantly, indicating exceptionally low market volatility. Within the context of market cycles, periods of low volatility are almost always followed by high volatility expansions. Therefore, a squeeze serves as a red flag for an impending breakout. While the squeeze doesn't predict the direction of the move, traders watch for a decisive candle close outside of the narrowed bands, accompanied by increased volume, to identify the start of a new trend.

When is the best time to use Bollinger Bands for trading?

Bollinger Bands are most effective in two specific scenarios: mean-reversion trading and breakout identification. In a sideways or ranging market, the bands act as flexible ceilings and floors where traders can fade price extremes. In trending markets, the bands help identify 'volatility breakouts'—if price breaks out after a long period of consolidation, it confirms a surge in momentum. However, they should be avoided as a standalone tool during 'trend-following' phases where the price clings to a band, as this often indicates strength rather than an immediate reversal.

Strategies using this indicator (51)

• Bollinger Bands Double B Breakout Strategy
• Revertium500 Strategy (Bollinger Bands)
• RSIOMA, Drake Delay Stochastic, BB Squeeze, ADX Strategy
• RSI, EMA, MACD, Bollinger Bands, Stochastic Oscillator, Fractal Strategy
• RSI MOD, AYN Strategy
• Bollinger Bands, Kaufman Efficiency Ratio Mean Reversion Strategy
• Bandas de Bollinger Strategy
• Bollinger Bands Mean Reversion Strategy
• Bollinger Bands, W and M Patterns Strategy
• Bandas de Bollinger, Promedio Móvil
• RSI Indicator Trading Strategy
• RSI Indicator: Buy and Sell Signals
• VWAP, 20 SMA, 9 SMA High Convergence Strategy
• Breakout Trading Strategy
• RSI Trading Strategy
• Bollinger Bands, Candlestick Patterns, Renko Charts Swing Trading Strategy
• Bollinger Bands, 9 EMA Scalping Strategy
• Bollinger Bands Breakout, 20% Flipper Trend Following Strategies
• Bollinger Bands Strategy
• Bollinger Bands Strategy
• Linear Regression Bands Strategy
• KC Bands, Bollinger Bands, Keltner Channels
• Bollinger Bands Strategy
• Equity Curve, Moving Average, Bollinger Bands Risk Management
• Crude Scalp, TP RSI Trend Reversal and Pullback Strategies
• Bollinger Bands Squeeze, Keltner Channel Strategy
• RSI, Bollinger Bands Asymmetry Strategy
• Bollinger Bands Strategy
• Bollinger Bands Indicator
• Bandas de Bollinger Strategy
• Bollinger Bands, Price Action
• Mean Reversion Trading Strategy
• Bollinger Bands, BBW, MFI Strategy
• Bollinger Bands
• Bandas de Bollinger Strategy
• Bollinger Bands, RSI Mean Reversion Strategy
• Bollinger Bands, Regresión a la Media
• Bollinger Bands Strategy
• Bollinger Bands, RSI Strategy
• Base Breakout Stocks Scanner + Strategy
• ChatGPT, MetaTrader 5, MQL5, Moving Average, Ichimoku, ADX, RSI, Stochastic, MACD, ATR, Bollinger Bands, Envelopes
• Profit Hunter Indicator: Squeeze Momentum, T3 Adaptive Trend Cloud, SuperTrend ATR Bands, Support & Resistance
• Correlations, Mean Reversion, Order Book, Volume, Stochastic Calculus, Machine Learning
• EURUSD Daytrading Strategy
• Scalping, Media Móvil, Bandas de Bollinger, Múltiples Temporalidades
• Bollinger Bands, EMA 21
• Market Edge, StrategyQuant, Stochastic, CCI, Bollinger Bands, RSI, Ultimate Oscillator
• Casey Bands, Bollinger Bands, Keltner Channels
• RSI Settings for Day Trading, Swing Trading and Scalpers
• MACD, Bollinger Bands, Support and Resistance Strategy
• RSI Setup and Strategies