Guidebook No. 2 of the Samxon Market Indicator Series. An 11-page PDF guide by Paul Samson (Samxon.ca).

Many traders treat a touch of the upper or lower band as a signal to sell or buy, and that approach fails. This guidebook presents Bollinger Bands for what they really are: a volatility map that shows what counts as a normal price right now, and whether that range is expanding or contracting.

Inside:

• How the bands, %B and BandWidth are calculated
• How to choose and adjust the settings
• Five core setups: the Squeeze, walking the bands, mean reversion in a range, W-bottoms and M-tops, and the middle band cross
• Reading the bands through a full market cycle, with the price cycle and volatility cycle running together
• A bar-by-bar worked example

The central idea: squeezes tend to form near cycle turning points, and losing the upper band while price still pushes higher marks the top.

Instant PDF download. For educational purposes only; not financial advice.