PATTERN · INDICATOR — ON CANDLE CLOSE
Bollinger Breakout
Close escapes the bands
FIRES WHEN
Fires when a bar closes outside the chosen Bollinger band.
Bollinger bands sit N standard deviations around a moving average, so they widen with volatility. A close outside the band is a statistically unusual move — roughly a two-sigma event at default settings.
HOW TRADERS READ IT
Out of a tight squeeze, a band close often starts a run — the breakout reading. In a stretched trend, the same close can mark exhaustion. The band only says “unusual”; whether it is fuel or a top is what the orderbook at that moment tells you.
SETTINGS
| Setting | What it does | e.g. |
|---|---|---|
| Timeframe | Candle timeframe the indicator is computed on | 1m / 5m / 15m / 1h / 4h / 1d |
| Period | Number of bars in the calculation | 20 |
| Std deviations | Band width in standard deviations | 2 |
| Band | upper = breakout above, lower = breakdown below | upper / lower |
20 periods at 2 standard deviations is standard; drop to 1.5σ to catch squeezes earlier at the cost of noise.
THE ALERT
Every alert lands in Telegram with a Replay link that opens the book at the exact firing moment.
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