Bollinger Plus

WHAT IS IT?

Bollinger Bands places volatility envelopes two standard deviations above and below a moving average. The bands expand with volatility and contract during consolidation. They are used for breakout detection, mean-reversion entries, and dynamic support and resistance visualization. The standard Bollinger Bands use symmetric bands with no trend-direction adaptation and no protection against spike candles artificially widening the bands.

INDICATOR PRIME IMPROVEMENTS

Bollinger Plus adds an ATR cap that limits maximum band width, preventing excessive expansion from flash crashes or spike candles. Trend-aware asymmetric bands use R² to widen the band in the trend direction and tighten the opposite band, giving price room to run while providing a tighter stop-side reference. Three middle-band types (SMA, EMA, DEMA) are available. Band-touch buy and sell signals fire when price pierces and returns from an outer band, qualified by ADX filter and cooldown.

HOW TO USE

The best setup is a lower-band touch during an Ichimoku uptrend: price tags the lower band and returns, generating a bullish entry signal. The ATR cap prevents false signals from gold spike candles and similar events. In ranging markets where ADX suppresses signals, use the bands as visual dynamic reference levels only. The asymmetric bands make trend pullback entries visually clear: in an uptrend the lower band is tighter, marking the key entry reference.

KIT CONFLUENCE

Bollinger Plus is the volatility-envelope timing layer of the Trend Trader Kit. Use it for pullback entries within trends confirmed by Master Ichimoku or Alligator Pro. A lower-band touch coinciding with an Alligator Pro bullish signal creates a volatility reversion plus trend momentum confluence. Fractal Zones Pro support levels below current price add structural floor confirmation.

Click here to get the Trend Trader Kit