Bollinger Band Tag Reversion

Bollinger Band Tag Reversion is the definitive clean build of the 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 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.