Bollinger Bands
Bollinger Bands are three lines plotted on your chart—a middle moving average with an upper and lower band that expand and contract based on volatility. They show you when price is stretching too far from normal.
Understanding the Concept
Markets breathe. They expand, contract, explode, then go quiet. Bollinger Bands visualize this rhythm. When bands squeeze tight, volatility's compressed—something big's coming. When price hits the upper band repeatedly, you're likely overbought. Lower band? Probably oversold. Crypto traders watch for "Bollinger Band squeezes" before major moves. That period where bands get super narrow? That's often right before Bitcoin rips 10% in either direction. Miss the squeeze, miss the move.
Real-World Example
You see BTC trading in a tight range for three days. Bollinger Bands are the tightest they've been in weeks. You set alerts at both bands. Price breaks the upper band with volume—you're long. The bands tell you the explosion's real, not a fake-out.
How Strykr Helps
Strykr's AI monitors Bollinger Bands signals across 5,000+ assets in real-time. Get instant alerts when significant patterns emerge, with context about market conditions and confluence factors.
Try Strykr Free