Decoded Intelligence Signal
Bollinger Band Touch Signal
advanced
strategy
Verified: May 27, 2026Lexicon Core Definition
A mean reversion entry signal generated when price reaches or breaches a Bollinger Band boundary while the market is in a non-trending state (ADX < 25) and a confirming momentum indicator (RSI) shows an oversold or overbought reading. The combination of price at the extreme and momentum at the extreme produces higher-quality signals than either alone.
Analysis Breakdown
A mean reversion entry signal generated when price reaches or breaches a Bollinger Band boundary while the market is in a non-trending state (ADX < 25) and a confirming momentum indicator (RSI) shows an oversold or overbought reading. The combination of price at the extreme and momentum at the extreme produces higher-quality signals than either alone. Full explanation coming soon when Journey 16 content is ingested.