Bollinger Bands Practice
Bollinger Bands wrap price in a volatility envelope that expands and contracts. They are not a simple buy-low-sell-high tool — train to read the squeeze and the band-walk in context.
Bollinger Bands plot a moving average with an upper and lower band set a number of standard deviations away. The bands widen when volatility rises and narrow (a "squeeze") when it falls. Price often rides one band in a strong trend and reverts toward the middle in a range.
How to spot it
- ✓ A squeeze (narrow bands) signals low volatility that often precedes a move.
- ✓ In a range, touches of the outer bands can mark stretched extremes.
- ✓ In a strong trend, price can "walk the band" — do not fade it blindly.
- ✓ The middle band (the moving average) acts as dynamic support or resistance.
- ✓ Use the bands with price action, not as automatic reversal signals.
⚠️ Common mistake
Shorting every tag of the upper band. In a strong uptrend price walks the upper band for a long time; selling each touch fights the trend and bleeds the account.
FAQ
Does touching the upper band mean sell?
Not by itself. In a range it can mark an extreme, but in a trend price rides the band. Read the context first. This page is practice, not advice.
What is a Bollinger squeeze?
A squeeze is when the bands contract sharply, showing very low volatility. It often precedes an expansion — but the bands do not tell you the direction.