Bollinger Bands frame price around a moving average so you can spot volatility compression, expansion, and stretched closes.
Bollinger Bands frame price around a moving average so you can spot volatility compression, expansion, and stretched closes.
Bollinger Bands measure distance from a moving average in standard deviations. Wide bands signal expansion, tight bands signal compression, and band walks often mean the trend is still accepted.
Bollinger Bands is shown as a chart overlay: candles remain the source of truth, while the line or zone frames bias, stretch, or invalidation.
basis = SMA(close, n)upper = basis + k * stdev(close, n)lower = basis - k * stdev(close, n)Bollinger Bands measure distance from a moving average in standard deviations. Wide bands signal expansion, tight bands signal compression, and band walks often mean the trend is still accepted.
Use Bollinger Bands to ask whether price is coiling, trending along a band, or snapping back toward the basis. In CandleOps they are excellent for mean-reversion filters and squeeze setups.
Bollinger Bands should tell you whether the mission is compressing, expanding, or stretching too far from a fair reference. Use it to size expectations, then let price structure choose the actual side.
The strongest reads come when band behavior matches structure: compression before breakout, or extension into a clear resistance or support zone.
Confirmation should be visible before the trade starts. If the indicator says one thing and raw candles reject that story, skip the mission or record it as a conflicted setup.
Length: 20
Deviation: 2.0
Touching a band alone is not a signal. Strong trends can ride the outer band much longer than expected.
Because Bollinger Bands sits on the price chart, the common trap is treating a touch, cross, or flip as automatic permission. The safer rule is price first, indicator second, execution last.
The indicator should change the decision process, not decorate it. If it does not affect direction, invalidation, target placement, or the decision to skip, remove it from the active tactical handbook for that drill.