Stocks & ETFs — Bollinger Bands

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 — useful for identifying squeezes, breakouts, and mean reversion opportunities.

What is Bollinger Band Width %?

Bollinger Band Width measures the distance between the upper and lower Bollinger Bands relative to price or the middle band. Lower values indicate compressed volatility (squeeze conditions), while expanding values indicate increasing volatility. The screener table shows a Volatility state (SQUEEZE / NORMAL / EXPANDING) derived from Band Width %.

Upper, Middle & Lower Bands

The middle band is typically a moving average. The upper and lower bands mark volatility-based envelopes. Price near an outer band can reflect directional pressure, but trend context remains essential.

Touching Outer Bands & Signal Logic

Touching an outer Bollinger Band is not a standalone reversal signal. In strong trends, price can continue moving along an outer band for extended periods. Squeeze conditions (compressed width) often precede volatility expansion. LONG/SHORT labels reflect band context on the selected timeframe — confirm with multi-timeframe structure and supporting indicators.

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 context with market status, compare in Compare, and cross-check with MACD, RSI, Momentum and Supertrend.