Bollinger Bounce Strategy


🎯 Main Idea:


Benefit from the price's tendency to bounce from the outer limits of the Bollinger Bands (upper and lower) when the market is ranging.



🔧 Strategy Settings:




  • Indicator: Bollinger Bands




    • Period: 20



    • Standard Deviation: 2



  • Time Frame: 1 hour or 4 hours (can be adjusted according to your style)



  • Helper Indicator: RSI (optional for confirmation)



🟩 Conditions for entering a buy trade:




  2. Price touches or breaks the lower bound of the Bollinger Bands



  4. A reversal candle appears (like a pin bar, hammer, engulfing...)



  6. (Optional) RSI below level 30 (oversold)



  8. Enter after confirming the close above the lower bound


🔹 Target (Take Profit): Middle line (SMA 20) or upper bound

🔹 Stop Loss: Below the last bottom by 5-10 points



🟥 Conditions for entering a sell trade:




  2. Price touches or breaks the upper bound of the Bollinger Bands



  4. Appearance of a bearish reversal candle



  6. (Optional) RSI above level 70 (overbought)



  8. Enter after closing a candle below the upper bound


🔹 Target: Middle line or lower bound

🔹 Stop Loss: Above the last peak by 5-10 points



📌 Visual Example:




In the image: Price touches the upper bound + Reversal candle → Drop towards the average



⚠️ Important Notes:




  • Do not use this strategy in strong trend situations (upward or downward).



  • It is preferable to use it when the Bollinger Bands are flat (horizontal).



  • Combining it with confirmation indicators like RSI or MACD increases accuracy.

    #square $BTC

    If you rebound, how do we use it with RSI and MACD?

  • It is in the second image.