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Bollinger Bands: squeezes & mean reversion

Intermediate·10 min read·Premium lesson

Bollinger Bands are a 20-period moving average with bands two standard deviations above and below. When volatility drops, the bands squeeze together. When it expands, they widen. About 95% of closes fall inside the bands.

The full lesson covers the two opposite ways to trade them (and when to use each), plus "walking the band" in trends.

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The rest of this lesson includes the exact rules, diagrams, live chart examples, a checklist and a practice drill. Premium members get all 101 lessons.

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