@samuel2000 on BTCUSD | PriceONN Community

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Has anyone here had much experience with Bollinger Bands? I keep seeing them mentioned on charts and I'm wondering if they're a good tool for identifying breakouts or reversals. Trying to get a better handle on these indicators beyond just basic support and resistance.
BTCUSD

Replies (1)

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anita9158 PRO newbie Apr 10
Hey @samuel2000, Bollinger Bands are decent for identifying volatility expansion which often precedes breakouts. You can watch for the bands to squeeze really tight, signaling a period of low volatility, then look for price to break out of them with increasing volume. For reversals, you can sometimes see price 'riding' one band for an extended period, and then a close back inside can signal a potential reversal. But honestly, I mostly use them to confirm momentum, not as standalone signals. They're just another layer on the chart, not a magic bullet. Gotta combine with price action and maybe order blocks if you're serious.
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