Bollinger Bands Indicator for Cryptocurrency Trading

Volatility Bands Around a Moving Average

Bollinger Bands place an upper and lower band around a moving average. The band width expands when volatility increases and contracts when volatility decreases. This makes Bollinger Bands useful for identifying squeezes, breakouts, and mean reversion opportunities.

Signal Logic: Squeeze, Breakout, Mean Reversion

Squeeze: when bands contract, volatility is low and a breakout becomes more likely. Breakout confirmation improves when price closes outside the band and holds. Mean reversion setups often appear when price tags an outer band and reverts back toward the middle band, especially in ranging regimes.

Multi-Timeframe Confirmation (15m, 1h, 4h, 1d)

Use lower timeframes for entry timing and higher timeframes to validate trend regime. A squeeze on 4h or 1d can be more meaningful than on 15m alone.

Professional Workflow: Filter, Screen, Validate

Combine Bollinger Bands with the indicator filter and the crypto screener. Validate macro context using market status, compare candidates using Compare, and confirm trend/momentum using Supertrend, MACD, RSI, Momentum, VWAP and Volume Spike.