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1. Shard Calculation

Query:

Response:

Calculated Shard: 43 (from laksa139)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa043.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/","crawl_time":1776038081,"first_indexed_time":1485526155,"http_code":200,"src_unparsed":"com,warriortrading!www,\/bollinger-bands-definition-day-trading-terminology\/ s443","src_root_hash":"598809389528988043","history_drop_reason":null,"meta_title":"Bollinger Bands Strategy: What They Are & How To Use Them","meta_descriptions":["Learn how I use the Bollinger Bands strategy to spot reversals, time entries, and stay one step ahead of false breakouts in day trading."],"attrs_boilerpipe_text":"What Are Bollinger Bands?\nHow I Use Bollinger Bands in Day Trading\nPrice Outside the Bands = Reversal Risk\nDon’t Act on the First Candle — Wait for Confirmation\nWhy I Pair Bollinger Bands With the 9 EMA\nLive Trade Example: CTMX & P Stock\nWhen Not To Use Bollinger Bands\nMy Favorite Indicators To Pair With Bollinger Bands\nFinal Thoughts: Mastering the Bollinger Bands Strategy\nWatch Full Video Here:\nBollinger Bands: Why Millionaire Traders Are Using This Technical Indicator\nWhen I first started using\nBollinger Bands\n, I realized they were more than just lines on a chart. These bands — simple as they look — can give you a powerful edge in reading\nprice action\n, especially when you know what to look for.\nIn this article, I’m breaking down exactly how I use the Bollinger Bands strategy in my day trading, how I combine them with other indicators, and the specific signals I look for when a reversal is coming.\nLet’s dive in.\nWhat Are Bollinger Bands?\nBollinger Bands are a type of\ntechnical indicato\nr that helps visualize volatility. They’re made up of three components: a\nsimple moving averag\ne in the middle (usually a\n20-period SMA\n), and two bands above and below that line, placed at a standard deviation (typically 2). The outer bands expand and contract based on price volatility.\nI keep the default settings. If you tweak them too much, you’re not seeing what other traders are seeing, and that’s a problem. In this business, I want to be reacting to what the majority is watching.\nIf you change them from what everyone else is using, you’re going to see different buy and sell signals.\nSo, default settings. Always.\nHow I Use Bollinger Bands in Day Trading\nThis indicator isn’t something I rely on by itself. But when I combine it with price action, volume, and a couple of other indicators, it becomes incredibly useful, especially for spotting reversals.\nPrice Outside the Bands = Reversal Risk\nWhenever I see a candle fully outside the upper or lower Bollinger Band, that’s my first signal. It’s not a guarantee, but it tells me we’re stretched.\nNearly 95% of the price action during the day will occur inside the Bollinger bands.\nSo when we’re outside, that’s a sign we’re reaching an extreme.\nThat’s when I start preparing for a possible\nreversal\n. But — and this is important — I don’t act on the first candle alone.\nDon’t Act on the First Candle — Wait for Confirmation\nJust because a candle is outside the band doesn’t mean I’m jumping in. What I look for next is confirmation: usually a topping tail, a\ndoji\n, or a candle with a small body and a long wick. The actual entry happens on the next candle when it breaks the low of that signal bar.\nYour stop? It’s always at the high of the day.\nThe best setups have that clear structure.\nThe confirmation is then when the next candle breaks the low and your stop is always at the high of day.\nWhy I Pair Bollinger Bands With the 9 EMA\nI rarely trade off Bollinger Bands alone. One of the best companion indicators is the 9 EMA. If the price is extended outside the Bollinger Bands and it’s well off the 9 EMA, that’s a red flag for overextension.\nWhen price is extended off the 9 EMA and outside the bands, I’m watching for the rug to get pulled. It increases the odds of a false breakout, especially when the\nMACD\nis starting to curl against the move.\nLive Trade Example: CTMX & P Stock\nLet me show you how this played out with a couple of stocks I watched and traded recently: CTMX and ticker P.\nCTMX was up about 200% on the news. We saw a strong move, a small pullback, and then another push higher. Then came the topping tail candle — fully outside the upper band. The volume was high, the MACD was curling, and we were way above the 9 EMA.\nThat was my cue.\nSame thing with P. We got an initial breakout, and then the next candle was red and completely outside the bands. That told me a pullback was likely. And sure enough, it came back to the 9 EMA, then to the 20 EMA, and eventually to\nVWAP\n.\nIt’s about recognizing when we’re extended and knowing that most of the time, we’ll snap back like a stretched rubber band.\nWhen Not To Use Bollinger Bands\nThere are situations where Bollinger Bands aren’t all that helpful. Here’s when I typically avoid using them:\nBands are too compressed:\nWhen the upper and lower bands are tight, it usually means the stock is in a\nconsolidation phase\n. That can lead to choppy, sideways movement, and I don’t want to get caught in a fake breakout.\nLow volume: I\nf there’s no volume behind the move, I don’t trust the setup. Volume is key for confirming price action.\nMACD is flat or curling against you:\nIf momentum isn’t lining up, that’s a big red flag.\nToo many indicators on your chart:\nThis one’s a big deal. If you overload your screen with 10+ indicators, it becomes hard to see what really matters. That’s how you fall into analysis paralysis.\nIf you have 25 indicators that you have to review every time before you take a trade, you’re going to start getting conflicting signals.\nKeep it clean. Keep it simple.\nMy Favorite Indicators To Pair With Bollinger Bands\nIf you’ve watched my videos, you know I like clean charts. Here’s what I use with Bollinger Bands:\n9 EMA:\nshort-term support\/resistance\n20 EMA:\nsecond layer of confirmation\nMACD:\nshows momentum shifts and crossovers\nVWAP:\nhelps me gauge overall strength or weakness\nCandlestick patterns:\nespecially dojis and topping tails\nYou don’t need a hundred indicators — I trade with 4 or 5, max.\nFinal Thoughts: Mastering the Bollinger Bands Strategy\nTo get good with Bollinger Bands, you need to watch how price behaves around them in real time. Focus on reversals when candles stretch outside the bands. Look for confirmation. Pair them with the 9 EMA and MACD.\nAnd don’t overcomplicate your charts. The best traders keep it clean and trust what the indicators — and volume — are telling them.\nThe more screen time you log, the more second nature this all becomes.\nIf you want to dive deeper into strategies like this, check out my\nlive trading classes\nand\ntools\nat Warrior Trading — that’s where I teach it all in real time.","attrs_markdown":"![](https:\/\/www.warriortrading.com\/wp-content\/uploads\/2018\/07\/wt-logotype-split@480x80.png)\n\n[![Warrior Trading logo appears as a blue hexagon with a blue shield-like image inside that creates the shape of a W on top with a white T inside created by negative space. 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The words WARRIOR TRADING appear to the right of the logo in white capitalized text.](https:\/\/media.warriortrading.com\/2020\/10\/27000845\/wt-logo-2020-horiz-321x36.png)](https:\/\/www.warriortrading.com\/)\n- [Products + Services]()\n  - - - [Introductory Specials]()\n        - [Free Webinar](https:\/\/www.warriortrading.com\/free-day-trading-class\/)\n        - [Pro Preview Two-Week Trial](https:\/\/www.warriortrading.com\/pro-preview-trial\/)\n        - [About Warrior Pro](https:\/\/www.warriortrading.com\/warrior-pro-info\/)\n    - - [Trading Courses & Memberships]()\n        - [Warrior Starter](https:\/\/www.warriortrading.com\/warrior-starter-info\/)\n        - [Warrior Pro](https:\/\/www.warriortrading.com\/warrior-pro-info\/)\n        - [Warrior Pro Bundle - BEST VALUE\\!](https:\/\/www.warriortrading.com\/warrior-pro-info\/)\n        - [Compare Memberships](https:\/\/www.warriortrading.com\/memberships\/)\n        - [Trading Course Library](https:\/\/www.warriortrading.com\/trading-courses\/)\n    - 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Ross's [results](https:\/\/www.warriortrading.com\/ross-camerons-verified-day-trading-earnings\/) are not typical. All information provided is for educational purposes and is not investment advice or buy\/sell recommendations. Read our [full disclaimer](https:\/\/www.warriortrading.com\/disclaimer\/).\n\nTechnical Analysis Guide\n\n## Technical Analysis Guide\n- [Technical Analysis Guide](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/)\n  - [Technical Analysis Guide](https:\/\/www.warriortrading.com\/technical-analysis\/)\n  - [Best Continuation Patterns](https:\/\/www.warriortrading.com\/continuation-patterns\/)\n  - [Best Trading Patterns](https:\/\/www.warriortrading.com\/best-day-trading-patterns\/)\n  - [Technical Analysis Software](https:\/\/www.warriortrading.com\/best-technical-analysis-software\/)\n  - [Top Books](https:\/\/www.warriortrading.com\/best-technical-analysis-books\/)\n  - [Best Momentum Indicators](https:\/\/www.warriortrading.com\/best-momentum-indicators\/)\n- [Technical Analysis Indicators](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/)\n  - [Bollinger Bands](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/)\n  - [EMA](https:\/\/www.warriortrading.com\/exponential-moving-average\/)\n  - [Fibonacci](https:\/\/www.warriortrading.com\/fibonacci-retracement-definition\/)\n  - [MACD](https:\/\/www.warriortrading.com\/moving-average-convergence-divergence-macd-definition-day-trading-terminology\/)\n  - [RSI](https:\/\/www.warriortrading.com\/relative-strength-index-rsi-definition-day-trading-terminology\/)\n  - [SMA](https:\/\/www.warriortrading.com\/simple-moving-average\/)\n  - [Stochastics](https:\/\/www.warriortrading.com\/stochastic-oscillator-day-trading-terminology\/)\n  - [TWAP](https:\/\/www.warriortrading.com\/time-weighted-average-price-indicator-twap\/)\n  - [Volume](https:\/\/www.warriortrading.com\/volume-definition-day-trading-terminology\/)\n  - [VWAP](https:\/\/www.warriortrading.com\/vwap\/)\n- [Technical Analysis Patterns](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/)\n  - [Consolidation](https:\/\/www.warriortrading.com\/stock-consolidation\/)\n  - [Cup and Handle](https:\/\/www.warriortrading.com\/cup-handle-definition\/)\n  - [Death Cross](https:\/\/www.warriortrading.com\/death-cross-definition-day-trading-terminology\/)\n  - [Double Top](https:\/\/www.warriortrading.com\/double-top-reversal-day-trading-terminology\/)\n  - [Engulfing](https:\/\/www.warriortrading.com\/bullish-engulfing-pattern-day-trading-terminology\/)\n  - [Flag Patterns](https:\/\/www.warriortrading.com\/flag-pennant-pattern-definition-day-trading-terminology\/)\n  - [Head and Shoulder](https:\/\/www.warriortrading.com\/head-shoulder-definition-day-trading-terminology\/)\n  - [Support\/Resistance](https:\/\/www.warriortrading.com\/support-and-resistance\/)\n  - [Trendlines](https:\/\/www.warriortrading.com\/trendlines\/)\n  - [Pennant](https:\/\/www.warriortrading.com\/pennant-pattern\/)\n  - [Shooting Star](https:\/\/www.warriortrading.com\/shooting-star-pattern\/)\n  - [Double Bottom](https:\/\/www.warriortrading.com\/double-bottom-pattern\/)\n  - [Ascending Triangle](https:\/\/www.warriortrading.com\/ascending-triangle-pattern\/)\n\n# Bollinger Bands Strategy: What They Are & How To Use Them\n![Bollinger Bands](https:\/\/media.warriortrading.com\/2017\/01\/bollinger-band.jpg)\n\nTable of contents\n\n- [What Are Bollinger Bands?](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h3smh3njaj41sqfw7r15ieyahh79pxe)\n- [How I Use Bollinger Bands in Day Trading](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h13smh3njdpa1oqbnatjdtst2gmelop)\n- [Price Outside the Bands = Reversal Risk](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h22smh3njh8p149sunr595q2w1yxizug)\n- [Don’t Act on the First Candle — Wait for Confirmation](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h30smh3njl6hvrjw9n1vit7iagi2b91)\n- [Why I Pair Bollinger Bands With the 9 EMA](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h37smh3njon81c6esov1ymhoze20xgo9)\n- [Live Trade Example: CTMX & P Stock](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h43smh3njsf1m7sim5eapwb4hp2z08)\n- [When Not To Use Bollinger Bands](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h48smh3nk05k7lj80gw34mja8veams)\n- [My Favorite Indicators To Pair With Bollinger Bands](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h52smh3nk41qxo6n4y15dx4sm4s2pyz)\n- [Final Thoughts: Mastering the Bollinger Bands Strategy](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h55smh3nk7yg14nz6mr14davd31roc6h8)\n\nWatch Full Video Here: [Bollinger Bands: Why Millionaire Traders Are Using This Technical Indicator](https:\/\/youtu.be\/DgWn3egDGb0?si=aliRBr5KR6e-eaY0)\n\nWhen I first started using [Bollinger Bands](https:\/\/www.investopedia.com\/terms\/b\/bollingerbands.asp), I realized they were more than just lines on a chart. These bands — simple as they look — can give you a powerful edge in reading [price action](https:\/\/www.warriortrading.com\/price-action-definition-day-trading-terminology\/), especially when you know what to look for.\n\nIn this article, I’m breaking down exactly how I use the Bollinger Bands strategy in my day trading, how I combine them with other indicators, and the specific signals I look for when a reversal is coming.\n\nLet’s dive in.\n\n## **What Are Bollinger Bands?**\nBollinger Bands are a type of [technical indicato](https:\/\/www.warriortrading.com\/top-4-indicators-day-trading\/)r that helps visualize volatility. They’re made up of three components: a [simple moving averag](https:\/\/www.warriortrading.com\/simple-moving-average\/)e in the middle (usually a [20-period SMA](https:\/\/www.investopedia.com\/terms\/s\/sma.asp)), and two bands above and below that line, placed at a standard deviation (typically 2). The outer bands expand and contract based on price volatility.\n\n[![](https:\/\/media.warriortrading.com\/2017\/01\/23124650\/unnamed-21.png)](https:\/\/media.warriortrading.com\/2017\/01\/23124650\/unnamed-21.png)\n\nI keep the default settings. If you tweak them too much, you’re not seeing what other traders are seeing, and that’s a problem. In this business, I want to be reacting to what the majority is watching. **If you change them from what everyone else is using, you’re going to see different buy and sell signals.**\n\nSo, default settings. Always.\n\n## **How I Use Bollinger Bands in Day Trading**\nThis indicator isn’t something I rely on by itself. But when I combine it with price action, volume, and a couple of other indicators, it becomes incredibly useful, especially for spotting reversals.\n\n### **Price Outside the Bands = Reversal Risk**\nWhenever I see a candle fully outside the upper or lower Bollinger Band, that’s my first signal. It’s not a guarantee, but it tells me we’re stretched.\n\n**Nearly 95% of the price action during the day will occur inside the Bollinger bands.** So when we’re outside, that’s a sign we’re reaching an extreme.\n\nThat’s when I start preparing for a possible [reversal](https:\/\/www.warriortrading.com\/reversal-definition-day-trading-terminology\/). But — and this is important — I don’t act on the first candle alone.\n\n### **Don’t Act on the First Candle — Wait for Confirmation**\nJust because a candle is outside the band doesn’t mean I’m jumping in. What I look for next is confirmation: usually a topping tail, a [doji](https:\/\/www.warriortrading.com\/doji-candle-definition-day-trading-terminology\/), or a candle with a small body and a long wick. The actual entry happens on the next candle when it breaks the low of that signal bar.\n\nYour stop? It’s always at the high of the day.\n\nThe best setups have that clear structure. **The confirmation is then when the next candle breaks the low and your stop is always at the high of day.**\n\n### **Why I Pair Bollinger Bands With the 9 EMA**\nI rarely trade off Bollinger Bands alone. One of the best companion indicators is the 9 EMA. If the price is extended outside the Bollinger Bands and it’s well off the 9 EMA, that’s a red flag for overextension.\n\nWhen price is extended off the 9 EMA and outside the bands, I’m watching for the rug to get pulled. It increases the odds of a false breakout, especially when the [MACD](https:\/\/www.warriortrading.com\/how-traders-use-the-macd\/) is starting to curl against the move.\n\n## **Live Trade Example: CTMX & P Stock**\nLet me show you how this played out with a couple of stocks I watched and traded recently: CTMX and ticker P.\n\nCTMX was up about 200% on the news. We saw a strong move, a small pullback, and then another push higher. Then came the topping tail candle — fully outside the upper band. The volume was high, the MACD was curling, and we were way above the 9 EMA.\n\n[![](https:\/\/media.warriortrading.com\/2017\/01\/23124701\/unnamed-20.png)](https:\/\/media.warriortrading.com\/2017\/01\/23124701\/unnamed-20.png)\n\nThat was my cue.\n\nSame thing with P. We got an initial breakout, and then the next candle was red and completely outside the bands. That told me a pullback was likely. And sure enough, it came back to the 9 EMA, then to the 20 EMA, and eventually to [VWAP](https:\/\/www.warriortrading.com\/vwap\/).\n\nIt’s about recognizing when we’re extended and knowing that most of the time, we’ll snap back like a stretched rubber band.\n\n## **When Not To Use Bollinger Bands**\nThere are situations where Bollinger Bands aren’t all that helpful. Here’s when I typically avoid using them:\n\n- **Bands are too compressed:**  When the upper and lower bands are tight, it usually means the stock is in a [consolidation phase](https:\/\/www.investopedia.com\/terms\/c\/consolidation.asp). That can lead to choppy, sideways movement, and I don’t want to get caught in a fake breakout.\n- **Low volume: I** f there’s no volume behind the move, I don’t trust the setup. Volume is key for confirming price action.\n- **MACD is flat or curling against you:** If momentum isn’t lining up, that’s a big red flag.\n- **Too many indicators on your chart:**  This one’s a big deal. If you overload your screen with 10+ indicators, it becomes hard to see what really matters. That’s how you fall into analysis paralysis.\n\n**If you have 25 indicators that you have to review every time before you take a trade, you’re going to start getting conflicting signals.**\n\nKeep it clean. Keep it simple.\n\n## **My Favorite Indicators To Pair With Bollinger Bands**\nIf you’ve watched my videos, you know I like clean charts. Here’s what I use with Bollinger Bands:\n\n- **9 EMA:** short-term support\/resistance\n- **20 EMA:** second layer of confirmation\n- **MACD:** shows momentum shifts and crossovers\n- **VWAP:** helps me gauge overall strength or weakness\n- **Candlestick patterns:**  especially dojis and topping tails\n\nYou don’t need a hundred indicators — I trade with 4 or 5, max.\n\n## **Final Thoughts: Mastering the Bollinger Bands Strategy**\nTo get good with Bollinger Bands, you need to watch how price behaves around them in real time. Focus on reversals when candles stretch outside the bands. Look for confirmation. Pair them with the 9 EMA and MACD.\n\nAnd don’t overcomplicate your charts. The best traders keep it clean and trust what the indicators — and volume — are telling them.\n\nThe more screen time you log, the more second nature this all becomes.\n\nIf you want to dive deeper into strategies like this, check out my [live trading classes](https:\/\/www.warriortrading.com\/trading-courses\/) and [tools](https:\/\/www.warriortrading.com\/the-5-best-tools-for-day-trading\/) at Warrior Trading — that’s where I teach it all in real time.\n\n[![Sign Up for a Free Class with Ross](https:\/\/media.warriortrading.com\/2020\/01\/ad-free-class-300x600-B.jpg)](https:\/\/www.warriortrading.com\/free-day-trading-class\/)\n\n[![Link to Ultimate Beginner Kit](https:\/\/media.warriortrading.com\/2020\/09\/14164907\/ultimate-beginner-kit-ad%40300x250.png)](https:\/\/www.warriortrading.com\/ultimate-beginner-day-trading-kit\/)\n\n[![YouTube](https:\/\/cdn.warriortrading.com\/warriortrading.com\/assets\/youtube-reverse.svg)](https:\/\/www.youtube.com\/@DaytradeWarrior)[![X](https:\/\/cdn.warriortrading.com\/warriortrading.com\/assets\/x-twitter-reverse.svg)](https:\/\/twitter.com\/WarriorTrading)[![Instagram](https:\/\/cdn.warriortrading.com\/warriortrading.com\/assets\/instagram-reverse.svg)](https:\/\/www.instagram.com\/warriortrading\/)[![LinkedIn](https:\/\/cdn.warriortrading.com\/warriortrading.com\/assets\/linkedin-in-reverse.svg)](https:\/\/www.linkedin.com\/company\/warrior-trading)[![Crunchbase](https:\/\/cdn.warriortrading.com\/warriortrading.com\/assets\/crunchbase-icon-reverse.svg)](https:\/\/www.crunchbase.com\/organization\/warrior-trading)[![TikTok](https:\/\/cdn.warriortrading.com\/warriortrading.com\/assets\/tiktok-reverse.svg)](https:\/\/www.tiktok.com\/@warriortradingofficial)[![Medium](https:\/\/cdn.warriortrading.com\/warriortrading.com\/assets\/medium-reverse.svg)](https:\/\/medium.com\/@WarriorTrading)\n\n### Sign Up for our Newsletter\nKeep up with Ross's day trading insights\n\nQuick Links\n\n[Free Webinar](https:\/\/www.warriortrading.com\/free-day-trading-class\/)[Pro Preview Two-Week Trial](https:\/\/www.warriortrading.com\/pro-preview-trial\/)[Warrior Pro](https:\/\/www.warriortrading.com\/warrior-pro-info\/)[Day Trade Dash Software](https:\/\/www.warriortrading.com\/day-trade-dash\/)[Chat Room](https:\/\/www.warriortrading.com\/day-trading-chat-room\/)[Simulator](https:\/\/www.warriortrading.com\/paper-trading\/)[Compare Memberships](https:\/\/www.warriortrading.com\/memberships\/)\n\nAbout\n\n[About Warrior Trading](https:\/\/www.warriortrading.com\/legitimacy\/)[Ross's Biography](https:\/\/www.warriortrading.com\/ross-cameron\/)[Ross's Verified Earnings (2017–2025)](https:\/\/www.warriortrading.com\/ross-camerons-verified-day-trading-earnings\/)[Member Reviews](https:\/\/www.warriortrading.com\/reviews\/)[Student Interviews](https:\/\/www.warriortrading.com\/day-trader-stories\/)[Careers](https:\/\/www.warriortrading.com\/careers\/)[Contact](https:\/\/support.warriortrading.com\/support\/tickets\/new?ticket_form=contact_support)[Support Portal](https:\/\/support.warriortrading.com\/support\/home)\n\nPolicies\n\n[Disclaimer, Terms & Conditions, Refund Policy](https:\/\/www.warriortrading.com\/disclaimer\/)[Privacy Policy](https:\/\/www.warriortrading.com\/privacy-policy\/)\n\nDo Not Sell or Share My Personal Information\n\nBilling & General Support\n\n**Contact Email:**\n\n[team@warriortrading.com](mailto:team@warriortrading.com)\n\n**Mailing Address:**\n\nWarrior Trading\n\nPO Box 330\n\nGreat Barrington, MA 01230\n\nIf you do not agree with any term or provision of our Terms and Conditions you should not use our Site, Services, Content or Information. Please be advised that your continued use of the Site, Services, Content, or Information provided shall indicate your consent and agreement to our Terms and Conditions.\n\nWarrior Trading may publish testimonials or descriptions of past performance but these results are NOT typical, are not indicative of future results or performance, and are not intended to be a representation, warranty or guarantee that similar results will be obtained by you. Profit figures may represent gross or net gains. Gross profits reflect trading performance prior to the deduction of transaction costs. These figures do not include the impact of commissions, taxes, margin interest, or other brokerage fees.\n\nRoss Cameron’s experience with trading is not typical, nor is the experience of traders featured in testimonials. They are experienced traders. Becoming an experienced trader takes hard work, dedication and a significant amount of time.\n\nYour results may differ materially from those expressed or utilized by Warrior Trading due to a number of factors. We do not track the typical results of our past or current customers. As a provider of educational courses, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole.\n\nAvailable research data suggests that most day traders are NOT profitable.\n\nIn a research paper published in 2014 titled “Do Day Traders Rationally Learn About Their Ability?”, professors from the University of California studied 3.7 billion trades from the Taiwan Stock Exchange between 1992-2006 and found that only 9.81% of day trading volume was generated by predictably profitable traders and that these predictably profitable traders constitute less than 3% of all day traders on an average day.\n\nIn a 2005 article published in the Journal of Applied Finance titled “The Profitability of Active Stock Traders” professors at the University of Oxford and the University College Dublin found that out of 1,146 brokerage accounts day trading the U.S. markets between March 8, 2000 and June 13, 2000, only 50% were profitable with an average net profit of \\$16,619.\n\nIn a 2003 article published in the Financial Analysts Journal titled “The Profitability of Day Traders”, professors at the University of Texas found that out of 334 brokerage accounts day trading the U.S. markets between February 1998 and October 1999, only 35% were profitable and only 14% generated profits in excess of \\$10,000.\n\nThe range of results in these three studies exemplify the challenge of determining a definitive success rate for day traders. At a minimum, these studies indicate at least 50% of aspiring day traders will not be profitable. This reiterates that consistently making money trading stocks is not easy. Day Trading is a high risk activity and can result in the loss of your entire investment. Any trade or investment is at your own risk.\n\nAny and all information discussed is for educational and informational purposes only and should not be considered tax, legal or investment advice. A referral to a stock or commodity is not an indication to buy or sell that stock or commodity.\n\nData, content and information presented or available within the Scanner, Charts, and Simulator is provided to us by third-party providers. Warrior Trading does not guarantee the validity, adequacy, timeliness, accuracy, reliability, completeness or usefulness of, such data, content or information.\n\nThis does not represent our full Disclaimer. Please read our [complete disclaimer](https:\/\/www.warriortrading.com\/disclaimer\/).\n\n**Citations for Disclaimer**\n\nBarber, Brad & Lee, Yong-Ill & Liu, Yu-Jane & Odean, Terrance. (2014). Do Day Traders Rationally Learn About Their Ability?. SSRN Electronic Journal. <https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=2535636>\n\nGarvey, Ryan and Murphy, Anthony, The Profitability of Active Stock Traders. Journal of Applied Finance , Vol. 15, No. 2, Fall\/Winter 2005. Available at SSRN: <https:\/\/ssrn.com\/abstract=908615>\n\nDouglas J. Jordan & J. David Diltz (2003) The Profitability of Day Traders, Financial Analysts Journal, 59:6, 85-94, DOI: <https:\/\/www.tandfonline.com\/doi\/abs\/10.2469\/faj.v59.n6.2578>\n\n![](https:\/\/cdn.warriortrading.com\/warriortrading.com\/gatsby\/media\/USA_flag.png)![](https:\/\/cdn.warriortrading.com\/warriortrading.com\/gatsby\/media\/credit-cards-logos_5_white.png)\n\nCopyright © 2026 Warrior Trading™ All rights reserved.\n\n![](https:\/\/s.amazon-adsystem.com\/iu3?pid=88b2283f-24ea-43a5-beb1-93967ece9aab&event=PageView)","attrs_readable_markdown":"- [What Are Bollinger Bands?](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h3smh3njaj41sqfw7r15ieyahh79pxe)\n- [How I Use Bollinger Bands in Day Trading](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h13smh3njdpa1oqbnatjdtst2gmelop)\n- [Price Outside the Bands = Reversal Risk](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h22smh3njh8p149sunr595q2w1yxizug)\n- [Don’t Act on the First Candle — Wait for Confirmation](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h30smh3njl6hvrjw9n1vit7iagi2b91)\n- [Why I Pair Bollinger Bands With the 9 EMA](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h37smh3njon81c6esov1ymhoze20xgo9)\n- [Live Trade Example: CTMX & P Stock](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h43smh3njsf1m7sim5eapwb4hp2z08)\n- [When Not To Use Bollinger Bands](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h48smh3nk05k7lj80gw34mja8veams)\n- [My Favorite Indicators To Pair With Bollinger Bands](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h52smh3nk41qxo6n4y15dx4sm4s2pyz)\n- [Final Thoughts: Mastering the Bollinger Bands Strategy](https:\/\/www.warriortrading.com\/bollinger-bands-definition-day-trading-terminology\/#h55smh3nk7yg14nz6mr14davd31roc6h8)\n\nWatch Full Video Here: [Bollinger Bands: Why Millionaire Traders Are Using This Technical Indicator](https:\/\/youtu.be\/DgWn3egDGb0?si=aliRBr5KR6e-eaY0)\n\nWhen I first started using [Bollinger Bands](https:\/\/www.investopedia.com\/terms\/b\/bollingerbands.asp), I realized they were more than just lines on a chart. These bands — simple as they look — can give you a powerful edge in reading [price action](https:\/\/www.warriortrading.com\/price-action-definition-day-trading-terminology\/), especially when you know what to look for.\n\nIn this article, I’m breaking down exactly how I use the Bollinger Bands strategy in my day trading, how I combine them with other indicators, and the specific signals I look for when a reversal is coming.\n\nLet’s dive in.\n\n## **What Are Bollinger Bands?**\nBollinger Bands are a type of [technical indicato](https:\/\/www.warriortrading.com\/top-4-indicators-day-trading\/)r that helps visualize volatility. They’re made up of three components: a [simple moving averag](https:\/\/www.warriortrading.com\/simple-moving-average\/)e in the middle (usually a [20-period SMA](https:\/\/www.investopedia.com\/terms\/s\/sma.asp)), and two bands above and below that line, placed at a standard deviation (typically 2). The outer bands expand and contract based on price volatility.\n\n[![](https:\/\/media.warriortrading.com\/2017\/01\/23124650\/unnamed-21.png)](https:\/\/media.warriortrading.com\/2017\/01\/23124650\/unnamed-21.png)\n\nI keep the default settings. If you tweak them too much, you’re not seeing what other traders are seeing, and that’s a problem. In this business, I want to be reacting to what the majority is watching. **If you change them from what everyone else is using, you’re going to see different buy and sell signals.**\n\nSo, default settings. Always.\n\n## **How I Use Bollinger Bands in Day Trading**\nThis indicator isn’t something I rely on by itself. But when I combine it with price action, volume, and a couple of other indicators, it becomes incredibly useful, especially for spotting reversals.\n\n### **Price Outside the Bands = Reversal Risk**\nWhenever I see a candle fully outside the upper or lower Bollinger Band, that’s my first signal. It’s not a guarantee, but it tells me we’re stretched.\n\n**Nearly 95% of the price action during the day will occur inside the Bollinger bands.** So when we’re outside, that’s a sign we’re reaching an extreme.\n\nThat’s when I start preparing for a possible [reversal](https:\/\/www.warriortrading.com\/reversal-definition-day-trading-terminology\/). But — and this is important — I don’t act on the first candle alone.\n\n### **Don’t Act on the First Candle — Wait for Confirmation**\nJust because a candle is outside the band doesn’t mean I’m jumping in. What I look for next is confirmation: usually a topping tail, a [doji](https:\/\/www.warriortrading.com\/doji-candle-definition-day-trading-terminology\/), or a candle with a small body and a long wick. The actual entry happens on the next candle when it breaks the low of that signal bar.\n\nYour stop? It’s always at the high of the day.\n\nThe best setups have that clear structure. **The confirmation is then when the next candle breaks the low and your stop is always at the high of day.**\n\n### **Why I Pair Bollinger Bands With the 9 EMA**\nI rarely trade off Bollinger Bands alone. One of the best companion indicators is the 9 EMA. If the price is extended outside the Bollinger Bands and it’s well off the 9 EMA, that’s a red flag for overextension.\n\nWhen price is extended off the 9 EMA and outside the bands, I’m watching for the rug to get pulled. It increases the odds of a false breakout, especially when the [MACD](https:\/\/www.warriortrading.com\/how-traders-use-the-macd\/) is starting to curl against the move.\n\n## **Live Trade Example: CTMX & P Stock**\nLet me show you how this played out with a couple of stocks I watched and traded recently: CTMX and ticker P.\n\nCTMX was up about 200% on the news. We saw a strong move, a small pullback, and then another push higher. Then came the topping tail candle — fully outside the upper band. The volume was high, the MACD was curling, and we were way above the 9 EMA.\n\n[![](https:\/\/media.warriortrading.com\/2017\/01\/23124701\/unnamed-20.png)](https:\/\/media.warriortrading.com\/2017\/01\/23124701\/unnamed-20.png)\n\nThat was my cue.\n\nSame thing with P. We got an initial breakout, and then the next candle was red and completely outside the bands. That told me a pullback was likely. And sure enough, it came back to the 9 EMA, then to the 20 EMA, and eventually to [VWAP](https:\/\/www.warriortrading.com\/vwap\/).\n\nIt’s about recognizing when we’re extended and knowing that most of the time, we’ll snap back like a stretched rubber band.\n\n## **When Not To Use Bollinger Bands**\nThere are situations where Bollinger Bands aren’t all that helpful. Here’s when I typically avoid using them:\n\n- **Bands are too compressed:**  When the upper and lower bands are tight, it usually means the stock is in a [consolidation phase](https:\/\/www.investopedia.com\/terms\/c\/consolidation.asp). That can lead to choppy, sideways movement, and I don’t want to get caught in a fake breakout.\n- **Low volume: I** f there’s no volume behind the move, I don’t trust the setup. Volume is key for confirming price action.\n- **MACD is flat or curling against you:** If momentum isn’t lining up, that’s a big red flag.\n- **Too many indicators on your chart:**  This one’s a big deal. If you overload your screen with 10+ indicators, it becomes hard to see what really matters. That’s how you fall into analysis paralysis.\n\n**If you have 25 indicators that you have to review every time before you take a trade, you’re going to start getting conflicting signals.**\n\nKeep it clean. Keep it simple.\n\n## **My Favorite Indicators To Pair With Bollinger Bands**\nIf you’ve watched my videos, you know I like clean charts. Here’s what I use with Bollinger Bands:\n\n- **9 EMA:** short-term support\/resistance\n- **20 EMA:** second layer of confirmation\n- **MACD:** shows momentum shifts and crossovers\n- **VWAP:** helps me gauge overall strength or weakness\n- **Candlestick patterns:**  especially dojis and topping tails\n\nYou don’t need a hundred indicators — I trade with 4 or 5, max.\n\n## **Final Thoughts: Mastering the Bollinger Bands Strategy**\nTo get good with Bollinger Bands, you need to watch how price behaves around them in real time. Focus on reversals when candles stretch outside the bands. Look for confirmation. Pair them with the 9 EMA and MACD.\n\nAnd don’t overcomplicate your charts. The best traders keep it clean and trust what the indicators — and volume — are telling them.\n\nThe more screen time you log, the more second nature this all becomes.\n\nIf you want to dive deeper into strategies like this, check out my [live trading classes](https:\/\/www.warriortrading.com\/trading-courses\/) and [tools](https:\/\/www.warriortrading.com\/the-5-best-tools-for-day-trading\/) at Warrior Trading — that’s where I teach it all in real time.","meta_canonical":null}

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Boilerpipe Text	What Are Bollinger Bands? How I Use Bollinger Bands in Day Trading Price Outside the Bands = Reversal Risk Don’t Act on the First Candle — Wait for Confirmation Why I Pair Bollinger Bands With the 9 EMA Live Trade Example: CTMX & P Stock When Not To Use Bollinger Bands My Favorite Indicators To Pair With Bollinger Bands Final Thoughts: Mastering the Bollinger Bands Strategy Watch Full Video Here: Bollinger Bands: Why Millionaire Traders Are Using This Technical Indicator When I first started using Bollinger Bands , I realized they were more than just lines on a chart. These bands — simple as they look — can give you a powerful edge in reading price action , especially when you know what to look for. In this article, I’m breaking down exactly how I use the Bollinger Bands strategy in my day trading, how I combine them with other indicators, and the specific signals I look for when a reversal is coming. Let’s dive in. What Are Bollinger Bands? Bollinger Bands are a type of technical indicato r that helps visualize volatility. They’re made up of three components: a simple moving averag e in the middle (usually a 20-period SMA ), and two bands above and below that line, placed at a standard deviation (typically 2). The outer bands expand and contract based on price volatility. I keep the default settings. If you tweak them too much, you’re not seeing what other traders are seeing, and that’s a problem. In this business, I want to be reacting to what the majority is watching. If you change them from what everyone else is using, you’re going to see different buy and sell signals. So, default settings. Always. How I Use Bollinger Bands in Day Trading This indicator isn’t something I rely on by itself. But when I combine it with price action, volume, and a couple of other indicators, it becomes incredibly useful, especially for spotting reversals. Price Outside the Bands = Reversal Risk Whenever I see a candle fully outside the upper or lower Bollinger Band, that’s my first signal. It’s not a guarantee, but it tells me we’re stretched. Nearly 95% of the price action during the day will occur inside the Bollinger bands. So when we’re outside, that’s a sign we’re reaching an extreme. That’s when I start preparing for a possible reversal . But — and this is important — I don’t act on the first candle alone. Don’t Act on the First Candle — Wait for Confirmation Just because a candle is outside the band doesn’t mean I’m jumping in. What I look for next is confirmation: usually a topping tail, a doji , or a candle with a small body and a long wick. The actual entry happens on the next candle when it breaks the low of that signal bar. Your stop? It’s always at the high of the day. The best setups have that clear structure. The confirmation is then when the next candle breaks the low and your stop is always at the high of day. Why I Pair Bollinger Bands With the 9 EMA I rarely trade off Bollinger Bands alone. One of the best companion indicators is the 9 EMA. If the price is extended outside the Bollinger Bands and it’s well off the 9 EMA, that’s a red flag for overextension. When price is extended off the 9 EMA and outside the bands, I’m watching for the rug to get pulled. It increases the odds of a false breakout, especially when the MACD is starting to curl against the move. Live Trade Example: CTMX & P Stock Let me show you how this played out with a couple of stocks I watched and traded recently: CTMX and ticker P. CTMX was up about 200% on the news. We saw a strong move, a small pullback, and then another push higher. Then came the topping tail candle — fully outside the upper band. The volume was high, the MACD was curling, and we were way above the 9 EMA. That was my cue. Same thing with P. We got an initial breakout, and then the next candle was red and completely outside the bands. That told me a pullback was likely. And sure enough, it came back to the 9 EMA, then to the 20 EMA, and eventually to VWAP . It’s about recognizing when we’re extended and knowing that most of the time, we’ll snap back like a stretched rubber band. When Not To Use Bollinger Bands There are situations where Bollinger Bands aren’t all that helpful. Here’s when I typically avoid using them: Bands are too compressed: When the upper and lower bands are tight, it usually means the stock is in a consolidation phase . That can lead to choppy, sideways movement, and I don’t want to get caught in a fake breakout. Low volume: I f there’s no volume behind the move, I don’t trust the setup. Volume is key for confirming price action. MACD is flat or curling against you: If momentum isn’t lining up, that’s a big red flag. Too many indicators on your chart: This one’s a big deal. If you overload your screen with 10+ indicators, it becomes hard to see what really matters. That’s how you fall into analysis paralysis. If you have 25 indicators that you have to review every time before you take a trade, you’re going to start getting conflicting signals. Keep it clean. Keep it simple. My Favorite Indicators To Pair With Bollinger Bands If you’ve watched my videos, you know I like clean charts. Here’s what I use with Bollinger Bands: 9 EMA: short-term support/resistance 20 EMA: second layer of confirmation MACD: shows momentum shifts and crossovers VWAP: helps me gauge overall strength or weakness Candlestick patterns: especially dojis and topping tails You don’t need a hundred indicators — I trade with 4 or 5, max. Final Thoughts: Mastering the Bollinger Bands Strategy To get good with Bollinger Bands, you need to watch how price behaves around them in real time. Focus on reversals when candles stretch outside the bands. Look for confirmation. Pair them with the 9 EMA and MACD. And don’t overcomplicate your charts. The best traders keep it clean and trust what the indicators — and volume — are telling them. The more screen time you log, the more second nature this all becomes. If you want to dive deeper into strategies like this, check out my live trading classes and tools at Warrior Trading — that’s where I teach it all in real time.
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Technical Analysis Guide ## Technical Analysis Guide - [Technical Analysis Guide](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/) - [Technical Analysis Guide](https://www.warriortrading.com/technical-analysis/) - [Best Continuation Patterns](https://www.warriortrading.com/continuation-patterns/) - [Best Trading Patterns](https://www.warriortrading.com/best-day-trading-patterns/) - [Technical Analysis Software](https://www.warriortrading.com/best-technical-analysis-software/) - [Top Books](https://www.warriortrading.com/best-technical-analysis-books/) - [Best Momentum Indicators](https://www.warriortrading.com/best-momentum-indicators/) - [Technical Analysis Indicators](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/) - [Bollinger Bands](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/) - [EMA](https://www.warriortrading.com/exponential-moving-average/) - [Fibonacci](https://www.warriortrading.com/fibonacci-retracement-definition/) - [MACD](https://www.warriortrading.com/moving-average-convergence-divergence-macd-definition-day-trading-terminology/) - [RSI](https://www.warriortrading.com/relative-strength-index-rsi-definition-day-trading-terminology/) - [SMA](https://www.warriortrading.com/simple-moving-average/) - [Stochastics](https://www.warriortrading.com/stochastic-oscillator-day-trading-terminology/) - [TWAP](https://www.warriortrading.com/time-weighted-average-price-indicator-twap/) - [Volume](https://www.warriortrading.com/volume-definition-day-trading-terminology/) - [VWAP](https://www.warriortrading.com/vwap/) - [Technical Analysis Patterns](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/) - [Consolidation](https://www.warriortrading.com/stock-consolidation/) - [Cup and Handle](https://www.warriortrading.com/cup-handle-definition/) - [Death Cross](https://www.warriortrading.com/death-cross-definition-day-trading-terminology/) - [Double Top](https://www.warriortrading.com/double-top-reversal-day-trading-terminology/) - [Engulfing](https://www.warriortrading.com/bullish-engulfing-pattern-day-trading-terminology/) - [Flag Patterns](https://www.warriortrading.com/flag-pennant-pattern-definition-day-trading-terminology/) - [Head and Shoulder](https://www.warriortrading.com/head-shoulder-definition-day-trading-terminology/) - [Support/Resistance](https://www.warriortrading.com/support-and-resistance/) - [Trendlines](https://www.warriortrading.com/trendlines/) - [Pennant](https://www.warriortrading.com/pennant-pattern/) - [Shooting Star](https://www.warriortrading.com/shooting-star-pattern/) - [Double Bottom](https://www.warriortrading.com/double-bottom-pattern/) - [Ascending Triangle](https://www.warriortrading.com/ascending-triangle-pattern/) # Bollinger Bands Strategy: What They Are & How To Use Them ![Bollinger Bands](https://media.warriortrading.com/2017/01/bollinger-band.jpg) Table of contents - [What Are Bollinger Bands?](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h3smh3njaj41sqfw7r15ieyahh79pxe) - [How I Use Bollinger Bands in Day Trading](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h13smh3njdpa1oqbnatjdtst2gmelop) - [Price Outside the Bands = Reversal Risk](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h22smh3njh8p149sunr595q2w1yxizug) - [Don’t Act on the First Candle — Wait for Confirmation](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h30smh3njl6hvrjw9n1vit7iagi2b91) - [Why I Pair Bollinger Bands With the 9 EMA](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h37smh3njon81c6esov1ymhoze20xgo9) - [Live Trade Example: CTMX & P Stock](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h43smh3njsf1m7sim5eapwb4hp2z08) - [When Not To Use Bollinger Bands](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h48smh3nk05k7lj80gw34mja8veams) - [My Favorite Indicators To Pair With Bollinger Bands](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h52smh3nk41qxo6n4y15dx4sm4s2pyz) - [Final Thoughts: Mastering the Bollinger Bands Strategy](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h55smh3nk7yg14nz6mr14davd31roc6h8) Watch Full Video Here: [Bollinger Bands: Why Millionaire Traders Are Using This Technical Indicator](https://youtu.be/DgWn3egDGb0?si=aliRBr5KR6e-eaY0) When I first started using [Bollinger Bands](https://www.investopedia.com/terms/b/bollingerbands.asp), I realized they were more than just lines on a chart. These bands — simple as they look — can give you a powerful edge in reading [price action](https://www.warriortrading.com/price-action-definition-day-trading-terminology/), especially when you know what to look for. In this article, I’m breaking down exactly how I use the Bollinger Bands strategy in my day trading, how I combine them with other indicators, and the specific signals I look for when a reversal is coming. Let’s dive in. ## What Are Bollinger Bands? Bollinger Bands are a type of [technical indicato](https://www.warriortrading.com/top-4-indicators-day-trading/)r that helps visualize volatility. They’re made up of three components: a [simple moving averag](https://www.warriortrading.com/simple-moving-average/)e in the middle (usually a [20-period SMA](https://www.investopedia.com/terms/s/sma.asp)), and two bands above and below that line, placed at a standard deviation (typically 2). The outer bands expand and contract based on price volatility. [![](https://media.warriortrading.com/2017/01/23124650/unnamed-21.png)](https://media.warriortrading.com/2017/01/23124650/unnamed-21.png) I keep the default settings. If you tweak them too much, you’re not seeing what other traders are seeing, and that’s a problem. In this business, I want to be reacting to what the majority is watching. If you change them from what everyone else is using, you’re going to see different buy and sell signals. So, default settings. Always. ## How I Use Bollinger Bands in Day Trading This indicator isn’t something I rely on by itself. But when I combine it with price action, volume, and a couple of other indicators, it becomes incredibly useful, especially for spotting reversals. ### Price Outside the Bands = Reversal Risk Whenever I see a candle fully outside the upper or lower Bollinger Band, that’s my first signal. It’s not a guarantee, but it tells me we’re stretched. Nearly 95% of the price action during the day will occur inside the Bollinger bands. So when we’re outside, that’s a sign we’re reaching an extreme. That’s when I start preparing for a possible [reversal](https://www.warriortrading.com/reversal-definition-day-trading-terminology/). But — and this is important — I don’t act on the first candle alone. ### Don’t Act on the First Candle — Wait for Confirmation Just because a candle is outside the band doesn’t mean I’m jumping in. What I look for next is confirmation: usually a topping tail, a [doji](https://www.warriortrading.com/doji-candle-definition-day-trading-terminology/), or a candle with a small body and a long wick. The actual entry happens on the next candle when it breaks the low of that signal bar. Your stop? It’s always at the high of the day. The best setups have that clear structure. The confirmation is then when the next candle breaks the low and your stop is always at the high of day. ### Why I Pair Bollinger Bands With the 9 EMA I rarely trade off Bollinger Bands alone. One of the best companion indicators is the 9 EMA. If the price is extended outside the Bollinger Bands and it’s well off the 9 EMA, that’s a red flag for overextension. When price is extended off the 9 EMA and outside the bands, I’m watching for the rug to get pulled. It increases the odds of a false breakout, especially when the [MACD](https://www.warriortrading.com/how-traders-use-the-macd/) is starting to curl against the move. ## Live Trade Example: CTMX & P Stock Let me show you how this played out with a couple of stocks I watched and traded recently: CTMX and ticker P. CTMX was up about 200% on the news. We saw a strong move, a small pullback, and then another push higher. Then came the topping tail candle — fully outside the upper band. The volume was high, the MACD was curling, and we were way above the 9 EMA. [![](https://media.warriortrading.com/2017/01/23124701/unnamed-20.png)](https://media.warriortrading.com/2017/01/23124701/unnamed-20.png) That was my cue. Same thing with P. We got an initial breakout, and then the next candle was red and completely outside the bands. That told me a pullback was likely. And sure enough, it came back to the 9 EMA, then to the 20 EMA, and eventually to [VWAP](https://www.warriortrading.com/vwap/). It’s about recognizing when we’re extended and knowing that most of the time, we’ll snap back like a stretched rubber band. ## When Not To Use Bollinger Bands There are situations where Bollinger Bands aren’t all that helpful. Here’s when I typically avoid using them: - Bands are too compressed: When the upper and lower bands are tight, it usually means the stock is in a [consolidation phase](https://www.investopedia.com/terms/c/consolidation.asp). That can lead to choppy, sideways movement, and I don’t want to get caught in a fake breakout. - Low volume: I f there’s no volume behind the move, I don’t trust the setup. Volume is key for confirming price action. - MACD is flat or curling against you: If momentum isn’t lining up, that’s a big red flag. - Too many indicators on your chart: This one’s a big deal. If you overload your screen with 10+ indicators, it becomes hard to see what really matters. That’s how you fall into analysis paralysis. If you have 25 indicators that you have to review every time before you take a trade, you’re going to start getting conflicting signals. Keep it clean. Keep it simple. ## My Favorite Indicators To Pair With Bollinger Bands If you’ve watched my videos, you know I like clean charts. Here’s what I use with Bollinger Bands: - 9 EMA: short-term support/resistance - 20 EMA: second layer of confirmation - MACD: shows momentum shifts and crossovers - VWAP: helps me gauge overall strength or weakness - Candlestick patterns: especially dojis and topping tails You don’t need a hundred indicators — I trade with 4 or 5, max. ## Final Thoughts: Mastering the Bollinger Bands Strategy To get good with Bollinger Bands, you need to watch how price behaves around them in real time. Focus on reversals when candles stretch outside the bands. Look for confirmation. Pair them with the 9 EMA and MACD. And don’t overcomplicate your charts. The best traders keep it clean and trust what the indicators — and volume — are telling them. The more screen time you log, the more second nature this all becomes. If you want to dive deeper into strategies like this, check out my [live trading classes](https://www.warriortrading.com/trading-courses/) and [tools](https://www.warriortrading.com/the-5-best-tools-for-day-trading/) at Warrior Trading — that’s where I teach it all in real time. 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In a 2005 article published in the Journal of Applied Finance titled “The Profitability of Active Stock Traders” professors at the University of Oxford and the University College Dublin found that out of 1,146 brokerage accounts day trading the U.S. markets between March 8, 2000 and June 13, 2000, only 50% were profitable with an average net profit of \$16,619. In a 2003 article published in the Financial Analysts Journal titled “The Profitability of Day Traders”, professors at the University of Texas found that out of 334 brokerage accounts day trading the U.S. markets between February 1998 and October 1999, only 35% were profitable and only 14% generated profits in excess of \$10,000. The range of results in these three studies exemplify the challenge of determining a definitive success rate for day traders. At a minimum, these studies indicate at least 50% of aspiring day traders will not be profitable. This reiterates that consistently making money trading stocks is not easy. Day Trading is a high risk activity and can result in the loss of your entire investment. Any trade or investment is at your own risk. Any and all information discussed is for educational and informational purposes only and should not be considered tax, legal or investment advice. A referral to a stock or commodity is not an indication to buy or sell that stock or commodity. Data, content and information presented or available within the Scanner, Charts, and Simulator is provided to us by third-party providers. Warrior Trading does not guarantee the validity, adequacy, timeliness, accuracy, reliability, completeness or usefulness of, such data, content or information. This does not represent our full Disclaimer. Please read our [complete disclaimer](https://www.warriortrading.com/disclaimer/). Citations for Disclaimer Barber, Brad & Lee, Yong-Ill & Liu, Yu-Jane & Odean, Terrance. (2014). Do Day Traders Rationally Learn About Their Ability?. SSRN Electronic Journal. <https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2535636> Garvey, Ryan and Murphy, Anthony, The Profitability of Active Stock Traders. Journal of Applied Finance , Vol. 15, No. 2, Fall/Winter 2005. Available at SSRN: <https://ssrn.com/abstract=908615> Douglas J. Jordan & J. David Diltz (2003) The Profitability of Day Traders, Financial Analysts Journal, 59:6, 85-94, DOI: <https://www.tandfonline.com/doi/abs/10.2469/faj.v59.n6.2578> ![](https://cdn.warriortrading.com/warriortrading.com/gatsby/media/USA_flag.png)![](https://cdn.warriortrading.com/warriortrading.com/gatsby/media/credit-cards-logos_5_white.png) Copyright © 2026 Warrior Trading™ All rights reserved. ![](https://s.amazon-adsystem.com/iu3?pid=88b2283f-24ea-43a5-beb1-93967ece9aab&event=PageView)
Readable Markdown	- [What Are Bollinger Bands?](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h3smh3njaj41sqfw7r15ieyahh79pxe) - [How I Use Bollinger Bands in Day Trading](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h13smh3njdpa1oqbnatjdtst2gmelop) - [Price Outside the Bands = Reversal Risk](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h22smh3njh8p149sunr595q2w1yxizug) - [Don’t Act on the First Candle — Wait for Confirmation](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h30smh3njl6hvrjw9n1vit7iagi2b91) - [Why I Pair Bollinger Bands With the 9 EMA](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h37smh3njon81c6esov1ymhoze20xgo9) - [Live Trade Example: CTMX & P Stock](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h43smh3njsf1m7sim5eapwb4hp2z08) - [When Not To Use Bollinger Bands](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h48smh3nk05k7lj80gw34mja8veams) - [My Favorite Indicators To Pair With Bollinger Bands](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h52smh3nk41qxo6n4y15dx4sm4s2pyz) - [Final Thoughts: Mastering the Bollinger Bands Strategy](https://www.warriortrading.com/bollinger-bands-definition-day-trading-terminology/#h55smh3nk7yg14nz6mr14davd31roc6h8) Watch Full Video Here: [Bollinger Bands: Why Millionaire Traders Are Using This Technical Indicator](https://youtu.be/DgWn3egDGb0?si=aliRBr5KR6e-eaY0) When I first started using [Bollinger Bands](https://www.investopedia.com/terms/b/bollingerbands.asp), I realized they were more than just lines on a chart. These bands — simple as they look — can give you a powerful edge in reading [price action](https://www.warriortrading.com/price-action-definition-day-trading-terminology/), especially when you know what to look for. In this article, I’m breaking down exactly how I use the Bollinger Bands strategy in my day trading, how I combine them with other indicators, and the specific signals I look for when a reversal is coming. Let’s dive in. ## What Are Bollinger Bands? Bollinger Bands are a type of [technical indicato](https://www.warriortrading.com/top-4-indicators-day-trading/)r that helps visualize volatility. They’re made up of three components: a [simple moving averag](https://www.warriortrading.com/simple-moving-average/)e in the middle (usually a [20-period SMA](https://www.investopedia.com/terms/s/sma.asp)), and two bands above and below that line, placed at a standard deviation (typically 2). The outer bands expand and contract based on price volatility. [![](https://media.warriortrading.com/2017/01/23124650/unnamed-21.png)](https://media.warriortrading.com/2017/01/23124650/unnamed-21.png) I keep the default settings. If you tweak them too much, you’re not seeing what other traders are seeing, and that’s a problem. In this business, I want to be reacting to what the majority is watching. If you change them from what everyone else is using, you’re going to see different buy and sell signals. So, default settings. Always. ## How I Use Bollinger Bands in Day Trading This indicator isn’t something I rely on by itself. But when I combine it with price action, volume, and a couple of other indicators, it becomes incredibly useful, especially for spotting reversals. ### Price Outside the Bands = Reversal Risk Whenever I see a candle fully outside the upper or lower Bollinger Band, that’s my first signal. It’s not a guarantee, but it tells me we’re stretched. Nearly 95% of the price action during the day will occur inside the Bollinger bands. So when we’re outside, that’s a sign we’re reaching an extreme. That’s when I start preparing for a possible [reversal](https://www.warriortrading.com/reversal-definition-day-trading-terminology/). But — and this is important — I don’t act on the first candle alone. ### Don’t Act on the First Candle — Wait for Confirmation Just because a candle is outside the band doesn’t mean I’m jumping in. What I look for next is confirmation: usually a topping tail, a [doji](https://www.warriortrading.com/doji-candle-definition-day-trading-terminology/), or a candle with a small body and a long wick. The actual entry happens on the next candle when it breaks the low of that signal bar. Your stop? It’s always at the high of the day. The best setups have that clear structure. The confirmation is then when the next candle breaks the low and your stop is always at the high of day. ### Why I Pair Bollinger Bands With the 9 EMA I rarely trade off Bollinger Bands alone. One of the best companion indicators is the 9 EMA. If the price is extended outside the Bollinger Bands and it’s well off the 9 EMA, that’s a red flag for overextension. When price is extended off the 9 EMA and outside the bands, I’m watching for the rug to get pulled. It increases the odds of a false breakout, especially when the [MACD](https://www.warriortrading.com/how-traders-use-the-macd/) is starting to curl against the move. ## Live Trade Example: CTMX & P Stock Let me show you how this played out with a couple of stocks I watched and traded recently: CTMX and ticker P. CTMX was up about 200% on the news. We saw a strong move, a small pullback, and then another push higher. Then came the topping tail candle — fully outside the upper band. The volume was high, the MACD was curling, and we were way above the 9 EMA. [![](https://media.warriortrading.com/2017/01/23124701/unnamed-20.png)](https://media.warriortrading.com/2017/01/23124701/unnamed-20.png) That was my cue. Same thing with P. We got an initial breakout, and then the next candle was red and completely outside the bands. That told me a pullback was likely. And sure enough, it came back to the 9 EMA, then to the 20 EMA, and eventually to [VWAP](https://www.warriortrading.com/vwap/). It’s about recognizing when we’re extended and knowing that most of the time, we’ll snap back like a stretched rubber band. ## When Not To Use Bollinger Bands There are situations where Bollinger Bands aren’t all that helpful. Here’s when I typically avoid using them: - Bands are too compressed: When the upper and lower bands are tight, it usually means the stock is in a [consolidation phase](https://www.investopedia.com/terms/c/consolidation.asp). That can lead to choppy, sideways movement, and I don’t want to get caught in a fake breakout. - Low volume: I f there’s no volume behind the move, I don’t trust the setup. Volume is key for confirming price action. - MACD is flat or curling against you: If momentum isn’t lining up, that’s a big red flag. - Too many indicators on your chart: This one’s a big deal. If you overload your screen with 10+ indicators, it becomes hard to see what really matters. That’s how you fall into analysis paralysis. If you have 25 indicators that you have to review every time before you take a trade, you’re going to start getting conflicting signals. Keep it clean. Keep it simple. ## My Favorite Indicators To Pair With Bollinger Bands If you’ve watched my videos, you know I like clean charts. Here’s what I use with Bollinger Bands: - 9 EMA: short-term support/resistance - 20 EMA: second layer of confirmation - MACD: shows momentum shifts and crossovers - VWAP: helps me gauge overall strength or weakness - Candlestick patterns: especially dojis and topping tails You don’t need a hundred indicators — I trade with 4 or 5, max. ## Final Thoughts: Mastering the Bollinger Bands Strategy To get good with Bollinger Bands, you need to watch how price behaves around them in real time. Focus on reversals when candles stretch outside the bands. Look for confirmation. Pair them with the 9 EMA and MACD. And don’t overcomplicate your charts. The best traders keep it clean and trust what the indicators — and volume — are telling them. The more screen time you log, the more second nature this all becomes. If you want to dive deeper into strategies like this, check out my [live trading classes](https://www.warriortrading.com/trading-courses/) and [tools](https://www.warriortrading.com/the-5-best-tools-for-day-trading/) at Warrior Trading — that’s where I teach it all in real time.
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