The Bollinger Bands rule uses Bollinger Bands for band-touch signals.
For the indicator formula, see Bollinger Bands — Formula.
Signals
| Condition | Signal |
|---|---|
| Price ≤ lower band | Buy |
| Price ≥ upper band | Sell |
Default parameters
| Parameter | Default |
|---|---|
| period | 20 |
| dev | 2 |
Where to use it
All signal sections and directional filters. Counter-trend classified.
Tips
- In strong trends, band touches can fail as reversals—add trend filters.
- Lower dev narrows bands (more signals); higher dev widens them.
Example
period 20, dev 2 on SOL/USDT 15m. Bands 142 / 150 / 158. Close 141.80 (≤ lower) → buy. Close 158.10 (≥ upper) → sell. In a squeeze (narrow bands), wait for volume filter so signals align with real participation.