Bollinger band fade

Bollinger bands mark two standard deviations around a 20-period average. In a range, closes outside the band tend to snap back to the middle line.

Mean reversion strategiesIntermediateConfirmed on candle close

Watch it play out

Replay plays a setup this strategy already finished and stops so you can call it. Live watches for the next one on Bitcoin (BTC-USD, 1-minute candles). Either way a setup is marked only when a candle closes, then it's locked and plays out to its target or its stop. Nothing to trade here.

How the live chart applies the rules
  • 1-minute candles. The chart runs every strategy on 1-minute Bitcoin candles from Coinbase, whatever timeframe the strategy page suggests. Times are New York time.
  • Closed candles only. Levels, triggers and stops are read when a candle closes. Entry is that candle's close.
  • One setup at a time. While a setup is playing out, the same strategy doesn't start another.
  • Sensible risk only. A setup counts only if its stop is between a quarter and 6 times the average candle range (ATR 14) from entry (wider for session-range strategies), and its target is at least 0.75R away.
  • How a setup ends. At its target or its stop. If one candle touches both, the stop counts. A setup also ends at any exit its page names, and after 120 candles (longer for trend and session strategies) if nothing is hit.
  • Replays. A replay plays the latest setup this strategy finished on the live chart's recent history, sped up. It's the same setup the live chart confirmed, with the same entry, stop and result. If the strategy hasn't finished one recently, the replay uses example candles and says so.
  • The trading day. A day runs 6:00 PM to 6:00 PM ET, like futures. VWAP restarts at 6:00 PM, and "yesterday" means the last full trading day.

How Bollinger band fade works

TargetStopStretched to the outer bandBack inside: fade
Example drawing, not live market data.
1Where's the level?
The upper and lower Bollinger bands (20, 2).
2What's the trigger?
A candle closes back inside the band after a close outside it.
3Where is it wrong?
Beyond the extreme outside the band.
4Where does it end?
The middle band.
Markets
Forex, Stocks, Crypto
Timeframes
15m to 1d
Sessions
Ranging markets
Also called
band reversion

What it means

Bollinger bands mark two standard deviations around a 20-period average. In a range, closes outside the band tend to snap back to the middle line.

How it is confirmed without repainting

Bands are calculated on closed candles.

When it fails

Band walks in strong trends.

Education only. Prop Firm Duel does not provide trade signals or financial advice. This page explains how the strategy is commonly defined. Past results never guarantee future results.

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Keltner channel fade

The Keltner channel sits 2 ATRs either side of the 20 EMA. A close outside it is stretched. When the next candle closes back inside, price often drifts back toward the middle.

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