Indicators Series – Part 5: Bollinger Bands

Bollinger Bands are your go-to for reading volatility and spotting potential trend reversals—even before they happen.

They consist of three lines:

Middle Band (SMA) — typically a 20-period Simple Moving Average.

Upper Band — Middle + (2 × standard deviations).

Lower Band — Middle – (2 × standard deviations).

How they help you trade:

Price touching upper band → possible overbought (time to take profit).

Price touching lower band → potential oversold (buy setup).

Bands narrowing (squeeze) → low volatility, breakout likely on the way.

Bands widening → high volatility, trend is in motion.

Pro Tip: Combine with RSI or MACD to confirm signals and avoid false entries.

#BollingerBands #tradingtips #cryptooinsigts

Image Source: Alchemy Markets — illustration of Bollinger Squeeze and breakout

use it on charts like $BTC $ETH $XRP and gain insights by yourself .

Part 5 will come tonight 12 am(+5 30)