# Bollinger Band Tag Reversion Bollinger Band Tag Reversion is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Bollinger Band Tag Reversion trades outer-band tags back toward the middle band, but only after a confirming close back inside with a range regime filter and a volatility expansion veto passing. Setups, invalidation lines, and resolutions are drawn on the chart, and a dashboard walks the same checks. Defaults: 20/2 bands, 5-bar confirmation, 0.5 ATR stop cushion. - Indicator in the LuxAlgo Library, by LuxAlgo, published Feb 15, 2026. - Access: free. - Concepts: [Bollinger Band Tag Reversion](https://www.luxalgo.com/library/concept/bollinger-band-tag-reversion/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=g0rci593aq8excc0uuikphtf - Page: https://www.luxalgo.com/library/indicator/bollinger-band-tag-reversion/ **Bollinger Band Tag Reversion** is the definitive clean build of the [Bollinger Band tag reversion](https://www.luxalgo.com/library/concept/bollinger-band-tag-reversion/) setup, and the tag alone is never the trade. A tag only arms a watch; the setup prints at the first close back inside the bands, and only when the backdrop cooperates: enough basis rotation to read as a range, and no expansion out of a tight base. Qualified setups print a triangle and a dashed invalidation line, then resolve as a circle at the target or a cross on failure. ## How to Trade the Bollinger Band Tag Reversion? - **Long Setup**: a lower-band tag closes back inside with the filters passing. Rotation toward the middle band, invalidation below the tag extreme less the ATR cushion. - **Short Setup**: the upper-band mirror. Alerts cover setups, completions, failures. - **Band-walk standby**: price closing outside through the whole confirmation window is strength, not stretch. The tag is refused until a close back inside. ## Bollinger Band Tag Reversion Settings - **Length** (default 20), **Source** (default close), **Multiplier** (default 2): the band construction; the basis is also the default target. - **Tag Trigger** (default Touch or Pierce): intrabar touches count; Close Beyond demands a full close outside. - **Confirmation Window** (default 5): bars allowed from tag to confirming close before the tag is ruled a band walk. - **Stretch Target (Opposite Band)** (default off): target the opposite band instead of the basis. - **Stop ATR Fraction** (default 0.5) with **ATR Length** (default 14): cushion past the tag extreme. - **Range Regime Filter** (default on) with **Regime Lookback** (default 20) and **Minimum Rotations** (default 3): basis crossings needed to call the backdrop a range. - **Expansion Veto** (default on) with **Reference Lookback** (default 125) and **Tight Base Window** (default 10): vetoes tags as width turns up off a fresh base low. ## Frequently Asked Questions ### What happens when price walks the band? Repeated tags with closes held outside are how trends look on the bands: the [Band Walk](https://www.luxalgo.com/library/indicator/band-walk/) pattern, and the reason unfiltered fading loses. This build refuses such tags: after the confirmation window the side stands aside until price closes back inside. ### Why is there an expansion veto? A tag printed as BandWidth turns up off the low of its lookback is breakout behavior from a tight base, the worst environment for a fade. The veto leaves that moment to breakout traders. ### Which target should I use? The middle band, the default, is the conservative rotation target. The opposite band roughly doubles the distance and suits established ranges; when a bar reaches both stop and target, the stop is conservatively assumed hit first. ## Related indicators - [Nadaraya-Watson Envelope](https://www.luxalgo.com/library/indicator/nadaraya-watson-envelope/) (Envelope): markdown at https://www.luxalgo.com/library/indicator/nadaraya-watson-envelope.md - [TTM Squeeze](https://www.luxalgo.com/library/indicator/ttm-squeeze/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/ttm-squeeze.md - [Fibonacci Bollinger Bands](https://www.luxalgo.com/library/indicator/fibonacci-bollinger-bands/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/fibonacci-bollinger-bands.md - [Double Bollinger Zones](https://www.luxalgo.com/library/indicator/double-bollinger-zones/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/double-bollinger-zones.md - [Proximal Range Filter](https://www.luxalgo.com/library/indicator/proximal-range-filter/) (Envelope): markdown at https://www.luxalgo.com/library/indicator/proximal-range-filter.md - [Bollinger Squeeze](https://www.luxalgo.com/library/indicator/bollinger-squeeze/) (Volatility): markdown at https://www.luxalgo.com/library/indicator/bollinger-squeeze.md - [Bollinger Bands Breakout Oscillator](https://www.luxalgo.com/library/indicator/bollinger-bands-breakout-oscillator/) (Bollinger Bands): markdown at https://www.luxalgo.com/library/indicator/bollinger-bands-breakout-oscillator.md - [Donchian MA Bands](https://www.luxalgo.com/library/indicator/donchian-ma-bands/) (Donchian Channels): markdown at https://www.luxalgo.com/library/indicator/donchian-ma-bands.md --- Source: https://www.luxalgo.com/library/indicator/bollinger-band-tag-reversion/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/