BRVX Glossary · Bollinger Bands · Updated September 25, 2026
Bollinger Bands are a volatility indicator made of a 20-period simple moving average with an upper and a lower band set two standard deviations above and below it. The bands widen when volatility rises and narrow when it falls.
The formula
Middle SMA20 Upper SMA20 + 2σ Lower SMA20 − 2σ
The bands measure how far price usually strays from its average.
How it works
- Average 20-period SMA
- Spread Standard deviation
- Bands ±2σ around it
How traders read them
- Squeeze: very narrow bands often come before a large move.
- Band walk: in a strong trend price can ride the upper or lower band.
- Mean reversion: in ranges, touches of a band often revert to the middle.
Common mistake
A touch of the upper band is not a sell signal by itself. In trends price stays near the band for long stretches; shorting every touch in a rising market is a common way to lose money.
On BRVX
On the BRVX TradingView chart, timeframe choice changes what the bands mean: a squeeze on a 1-hour chart and on a daily chart are different events. Leverage on BRVX is capped per market, up to 150x on BTC/USDT; a breakout from a squeeze can move a high-leverage position through its margin quickly.
Questions about Bollinger Bands
What are the best Bollinger Band settings?
20 periods and 2 standard deviations are the standard.
Is a Bollinger squeeze bullish?
It is neutral: it signals a likely large move, not its direction.
Can Bollinger Bands be used with RSI?
Yes, to judge whether a band touch comes with overbought or oversold momentum.
Bollinger Bands: next steps on BRVX
Bollinger Bands on ASTER/USDT: weekend candles included, leverage 5x to 100x, 0.05% to open and 0.05% to close.
Read next: Volatility, Moving average and RSI (relative strength index).
Leverage works both ways: a small move against you can lose you the whole margin.
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