What is Bollinger Bands?
Bollinger Bands draw an upper and lower channel around price using a moving average plus or minus 2 standard deviations. Think of the bands like a rubber band wrapped around price — they expand when the market gets volatile and squeeze tight when it goes quiet. That squeeze is the interesting part: when the bands tighten significantly, it's often a sign that a big move is brewing. When price touches or pushes past the outer edges, it frequently snaps back toward the middle. John Bollinger developed this indicator in the 1980s and it remains one of the most widely used tools in trading today.
How Does It Work?
The bot watches where price sits relative to the bands. When price drops near or below the lower band, the market may be oversold — the bot signals Buy. When price climbs near or above the upper band, the market may be overbought — the bot signals Sell. Uses price data.
Using It in BitThor
Add Bollinger Bands from the bot config panel. It works well as a standalone signal or paired with RSI to confirm reversals. It's particularly great for spotting when markets have stretched too far in one direction and are likely to snap back.
Tips for Beginners
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Watch for the 'Bollinger Squeeze' — when the bands tighten dramatically, a big price move is usually just around the corner.
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In a strong trending market, price can ride along the outer band for a long time. Pair with a trend indicator to avoid fading a move that still has legs.
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Combining Bollinger Bands with a momentum indicator like RSI gives you a much stronger confirmation when price touches the outer edges.
Indicator by: John Bollinger | Learn more
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Risk Disclosure: Cryptocurrency trading involves substantial risk of loss and is not suitable for every user. Review your bot settings carefully before live trading. BitThor provides software tools only and does not provide investment advice. ML-based forecasting and predictive signals are analytical tools only and are not guarantees of future performance or profit.