Bollinger Band Buy Signal
Bollinger Bands plot two standard deviations around a 20-day moving average. A touch of the lower band means price is statistically stretched to the downside — but a touch alone is not a buy.
What a real signal looks like
- Lower-band touch or close below it
- RSI under 35
- Volume not collapsing
- Price near 100-day or 200-day SMA support
- Fundamentals stable: revenue and FCF holding
Band touches that are traps
In a strong downtrend, price can ride the lower band for weeks. If the 200-day SMA is sloping down and fundamentals are deteriorating, a lower-band touch is not mean-reversion — it is trend continuation. The agent down-weights these with the red-flag penalty.
Bollinger Band squeeze
A tightening band ("squeeze") signals a coming volatility expansion but not direction. Combine with the trend filter (price above the 200-day SMA) before treating a squeeze breakout as bullish.
How the agent scores it
Bollinger / RSI oversold is worth up to 20 of the agent's 100 scoring points, weighted alongside pullback depth, MA support, fundamentals, and valuation.
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Research and educational tool. Not investment advice. See our disclaimer.