Decoded Intelligence Signal
Bollinger Band Midline Exit
advanced
strategy
Verified: May 27, 2026Lexicon Core Definition
The take-profit target for a mean reversion trade: the central moving average of the Bollinger Band (typically 20-period SMA). This exit level captures the majority of mean reversion profit — the return from the extreme to the mean — without attempting to ride a new trend from the opposite extreme, which would violate the mean reversion thesis.
Analysis Breakdown
The take-profit target for a mean reversion trade: the central moving average of the Bollinger Band (typically 20-period SMA). This exit level captures the majority of mean reversion profit — the return from the extreme to the mean — without attempting to ride a new trend from the opposite extreme, which would violate the mean reversion thesis. Full explanation coming soon when Journey 16 content is ingested.