💥 Bollinger Bands — Volatility’s Secret Weapon!
Want to catch breakout moves before they explode? Bollinger Bands show you where pressure is building.
👉 Learn how to read volatility and trade like a sniper during squeezes and breakouts 🎯📊
Welcome to Episode 14 of:
"Learn Indicators Like a Pro" 🔍
Today’s topic: Bollinger Bands — Ride Explosions, Avoid Traps
📊 What Are Bollinger Bands?
Bollinger Bands are 3 dynamic lines over your chart:
Middle Band: A simple moving average (default: 20-period SMA)
Upper Band: Middle + 2x standard deviation
Lower Band: Middle - 2x standard deviation
✅ They expand when volatility increases
✅ They squeeze when the market is quiet — that’s where the magic happens 👀
🚨 Why Bollinger Bands Matter:
Price loves to stay inside the bands
When the bands squeeze tight → a big move is coming
When price touches the upper/lower band → expect a reaction or reversal
📌 How to Use Bollinger Bands:
1. The Squeeze Strategy
When the bands narrow like a spring → prepare for breakout
Wait for volume to increase and candle to break out of band
👉 Trade in the direction of breakout with tight stop
2. Reversion to the Mean
Price touches upper band? It often pulls back to the middle line
Same for lower band
👉 Great for range trading
3. Double Confirmation
Use Bollinger Bands with RSI or MACD
If RSI is overbought + price hits upper band → stronger reversal signal
⚠️ Common Mistakes to Avoid:
❌ Buying just because price hits lower band
❌ Ignoring volume — breakouts without volume = fakeouts
❌ Trading in choppy markets — wait for clear squeeze or trend
📌 Next Episode: MACD — The Trend-Following Beast That Spots Momentum Like Magic ⚡📈
Follow now to unlock the secret behind this powerful crossover indicator!