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Module 2 · Chapter 1

Bollinger Band Mean Reversion

Part of Single-Asset Mean Reversion Strategies

1
Bollinger Band Construction: Period, Multiplier, and Band Width
Bollinger Bands measure volatility. John Bollinger developed them in the 1980s. They consist of three lines. A simple moving average (SMA) forms the middle band. Upper and lower bands extend from this
5 min
2
Classic Bollinger Band Bounce Strategy
The Bollinger Band Bounce strategy uses price movement within standard deviation bands. John Bollinger created Bollinger Bands in the 1980s. They include a simple moving average (SMA) and upper/lower
5 min
3
Bollinger Band Squeeze and Expansion Dynamics
Bollinger Bands measure market volatility. They use a simple moving average (SMA) and two standard deviation bands. The upper band sits two standard deviations above the SMA. The lower band sits two s
5 min
4
%B Indicator: Quantifying Position Within the Bands
The %B indicator quantifies an asset's price position relative to its Bollinger Bands. It provides a normalized value. This value indicates where the current price sits between the upper and lower ban
5 min
5
Bandwidth as a Volatility Filter
Bollinger Bands define price boundaries. They use a simple moving average (SMA) and standard deviation. The standard deviation measures price dispersion. Higher standard deviation means wider bands. W
5 min
6
Optimizing Bollinger Band Parameters for Mean Reversion
Bollinger Bands measure volatility. John Bollinger developed them. They consist of a Simple Moving Average (SMA) and two standard deviation bands. The upper band sits two standard deviations above the
5 min
7
Double Bollinger Bands for Trend vs. Range Detection
Double Bollinger Bands enhance traditional Bollinger Bands. They use two sets of bands with different standard deviation multiples. John Bollinger introduced them for improved market analysis. This se
5 min
8
Bollinger Band Walk: When Mean Reversion Fails
Bollinger Band walks occur when price sustains movement outside the bands. This signals a trend, not mean reversion. A security's price typically oscillates between its upper and lower Bollinger Bands
5 min
9
Combining Bollinger Bands with Volume Confirmation
Bollinger Bands identify overbought or oversold conditions. Price movement outside the bands often signals a potential reversal. Volume confirms the strength of these price movements. High volume on a
5 min
10
Multi-Timeframe Bollinger Band Analysis
Analyze assets across multiple timeframes for robust mean reversion signals. A signal on one timeframe gains confirmation from agreement on another. This reduces false positives and improves trade ent
5 min