Bollinger Bands Trading Strategy: Complete Free Guide
Indicators & Strategies · 14 min · Published 2026-03-12
Learn Bollinger Bands trading for free. Covers band squeeze, breakout strategies, mean reversion, double bottoms, and volatility analysis. Free at Tradyom.
Bollinger Bands are a volatility indicator consisting of a 20-period SMA (middle band) with upper and lower bands set at 2 standard deviations. The bands expand during high volatility and contract during low volatility. The key strategies include the Bollinger Squeeze (band contraction preceding breakouts), mean reversion trades, and W-bottom/M-top patterns.
Frequently Asked Questions
What are the best Bollinger Bands settings?
The default (20, 2) settings work well for most applications. For shorter timeframes, try (10, 1.5). For longer-term analysis, use (50, 2.5). The key is consistency.
Are Bollinger Bands good for crypto trading?
Yes. Bollinger Bands are excellent for crypto due to the high volatility in crypto markets. The squeeze pattern is particularly useful for identifying pending breakouts in Bitcoin and altcoins.
Can I learn Bollinger Bands for free?
Yes. Tradyom offers free courses covering Bollinger Bands strategies including squeeze trades, mean reversion, and pattern recognition.