Overview
Bollinger Mean Reversion is a reversal strategy built around classic Bollinger Bands.
It is designed to detect stretched price conditions and turn them into structured entry signals. This makes it suitable for traders looking for a rule-based mean reversion model across different instruments, bar types, and trading styles.
Signal Logic
The strategy monitors price relative to the Bollinger Bands for signs that the market may be overextended.
A sell signal appears when price expands into the upper band.
A buy signal appears when price compresses toward the lower band.
Bollinger
| Parameter | Description |
|---|---|
| Number of standard deviations | Controls band width. Larger deviations = wider volatility envelope, fewer signals. |
| Period | Defines how quickly the bands adapt to price. Lower values react faster. |
Common Features
Each strategy has its own signal logic, but installation, setup, and trade management are identical across the product line. Once you know how to use one, you know how to use the rest.
See also: