Bollinger Bands %B, LSMA Strategy

This trading strategy uses Bollinger Bands %B and LSMA indicators to identify reversals. Find explicit entry rules for long and short positions across any asset

Published · Updated · Methodology: Technical Indicators

Part of: Moving Average Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: 15 minutes, Any timeframe
  • Markets: Cryptocurrencies, Forex, Indices, Any asset

Indicators used

  • Bollinger Bands %B
  • LSMA (Least Squares Moving Average)

Source video

Decoded from: 🟢 La ESTRATEGIA de TRADING más FÁCIL y EFECTIVA que HAS VISTO HASTA HOY | 1-3-5-15-30 minutos by *Alex Inversiones* — watch the original

Key timestamps:

  • 0:00 - Introduction
  • 3:00 - Indicator setup
  • 6:00 - LSMA and Bollinger Bands %B explanation
  • 7:30 - Strategy conditions for Long/Short
  • 8:30 - Short entry example
  • 10:30 - Long entry example
  • 12:00 - Strategy walkthrough

Strategy overview

A moving average gives a trend reference by smoothing recent price, and this entry pairs one with Bollinger Bands — but with an unusual twist on both halves. The moving average here is an LSMA, which fits a least-squares regression line through recent prices and reads its endpoint rather than averaging them, making it the most literally *fitted* member of the moving-average family. The Bollinger side is not the bands themselves but %B, the normalized version that reports where price sits between the two envelopes as a single bounded number. The result is a reading split across two panes: one line stays on the chart tracking direction, while the band relationship is lifted off the chart and turned into a scale you read rather than a level you watch price touch.

The source is a Spanish-language video from the channel *Alex Inversiones*, titled "La ESTRATEGIA de TRADING más FÁCIL y EFECTIVA que HAS VISTO HASTA HOY | 1-3-5-15-30 minutos". Two things stand out in its structure. First, the title advertises five intraday timeframes at once — 1, 3, 5, 15 and 30 minutes — while this entry is filed at 15 minutes and marked as timeframe-agnostic; the pitch is portability rather than a specific chart. Second, the running order puts tooling before meaning: indicator setup arrives at 3:00, the explanation of what LSMA and %B actually measure only at 6:00, and the long/short conditions at 7:30 — so a viewer has both indicators installed for several minutes before being told why either is on the screen. The demonstrations close the video, short first at 8:30 and long at 10:30.

Worth stating plainly: no instrument, market, dataset or test period appears anywhere in this entry, and the two chart walkthroughs are single annotated illustrations rather than results. The "easiest and most effective" framing is the video's own title, not a measured finding. No mechanical rule set has been decoded for this strategy, so this page covers the concept and the video's approach rather than a rule-by-rule breakdown. One conceptual caution the video's own framing invites: because %B is bounded, thresholds drawn on it look objective, but where you place them is still a choice, not a property of the indicator.

Topics

bollinger bands strategy · lsma indicator · reversal trading strategy · technical indicators · 15 minute strategy · forex strategy · crypto trading strategy · indices trading · price action · tradingview strategy · pine script · scalping strategy · swing trading · band indicator strategy

Frequently asked questions

What does Bollinger Bands %B measure?

%B expresses where price sits relative to the Bollinger Bands as a single normalized number instead of a visual band touch — roughly 1 at the upper band, 0 at the lower band, and outside that range when price trades beyond either envelope. It turns a chart relationship into a value you can compare across time and across instruments.

How is an LSMA different from a simple or exponential moving average?

An LSMA (Least Squares Moving Average) fits a linear regression line to a window of recent prices and plots that line's current endpoint, rather than averaging the prices directly. Because it follows the fitted slope, it tends to track turns in price more closely than a mean-based average of comparable length.

What timeframe does this strategy use?

The source video's title advertises 1, 3, 5, 15 and 30-minute charts, and this entry is filed at 15 minutes and marked as applicable to any timeframe. No specific instrument, market or test period is stated in the source.

How can I evaluate a %B and LSMA combination before trading it?

Test it on historical data for the instrument and timeframe you actually intend to trade, since a setup pitched as working on five different intraday charts will not behave identically on all of them. Strategy Decoder catalogs strategies extracted from video sources so you can compare variants of the same indicator pairing side by side.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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