💣 Bollinger Bands — Predict Explosions Before the Market Moves!

Price moving sideways? That’s your signal — a big move is coming!

👉 Traders use this to catch volatility squeezes and breakout trades 📉📈


Welcome to Episode 21 of:

"Learn Indicators Like a Pro" 🔍

Today’s topic: Bollinger Bands — Volatility Traps & Breakout Signals



🧠 What Are Bollinger Bands?


Developed by John Bollinger, this tool measures market volatility and shows when price is overbought, oversold, or ready to explode.


It consists of:


  • Middle Band: 20-period simple moving average (SMA)


  • Upper Band = SMA + (2 × standard deviation)


  • Lower Band = SMA - (2 × standard deviation)




🔍 How to Read It Like a Pro:


✅ 1. The Squeeze = Big Move Coming

When bands contract tightly, volatility drops.

📉📈 This usually precedes a strong breakout in either direction

👉 Watch for volume spikes to confirm direction!


✅ 2. Price Touches Upper Band = Overbought

Look for:


  • Bearish candles after touching the top → Reversal setup


  • 🔥 Can signal potential short opportunity



✅ 3. Price Touches Lower Band = Oversold

Look for:


  • Bullish candles near the lower band → Bounce setup


  • 🟢 Often a buy signal during uptrend corrections




⚠️ Key Trading Tips:


✅ Combine with RSI or MACD for direction confirmation

✅ The squeeze is most powerful before news or major breakout patterns

❌ Don’t trade every touch — look for price action confirmation

✅ Add trendlines or support/resistance for high-probability setups



📌 Next Episode: Volume Profile — See Where the Big Money Is Actually Buying! 🧠📊

Follow now to unlock where whales are entering and how to ride with them!