Mean Reversion "Bollinger Band Width" Strategy (Bollinger Band Width Squeeze)

Logical Explanation: Price volatility is cyclical: after extreme stagnation, there will be a surge; after a surge, it will return to stagnation. By calculating the extremities of the Bollinger Band width, we can predict the moment when the market is about to explode, rather than blindly chasing gains or losses.

* Detailed Operations:

1. Set up indicators: Enable Bollinger Bands and add the "Bollinger Band Width (BBW)" indicator.

2. Find extremities: When the BBW value drops to the lowest point within the past 125 periods, it indicates that energy is highly compressed.

3. Confirm direction: If, at this time, the price closes with increased volume outside the upper Bollinger Band, go long with the trend; otherwise, open a short position.

4. Take profit: Exit when BBW reaches a recent high again, or when the price returns to the middle band.

Case Analysis:

BTC experienced three weeks of narrow fluctuations, with BBW hitting historical lows. One early morning, the price dropped sharply below the lower band with increased volume.

* Result: This "breakout after stagnation" is highly explosive and often marks the start of a strong trend, suitable for leveraging 3-5 times to capture large volatility.
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