Optimal Bollinger Bands Settings for Different Trading Styles
Optimal Bollinger Bands Settings for Different Trading Styles
While the default Bollinger Bands settings work well for many traders, adjusting them for your specific trading style can improve accuracy and reduce false signals.
Let’s explore how to customize your Bollinger Bands setup based on your strategy—day trading, swing trading, or long-term investing.
Default Bollinger Bands Settings
- Period (SMA): 20
- Standard Deviation: 2
This is the most commonly used setting, and it’s what most platforms default to. It works well across different timeframes, but it’s not always ideal.
Best Settings for Day Trading
If you’re trading short-term intraday moves, you need faster, more responsive signals.
- SMA Period: 10 to 15
- Standard Deviation: 1.5 to 2
🔍 Use on: 1-minute to 15-minute charts
💡 Purpose: Catch quick volatility-based setups like breakouts or pullbacks
Best Settings for Swing Trading
Swing traders hold positions for a few days. You’ll want a balance between sensitivity and stability.
- SMA Period: 20 (default) or 25
- Standard Deviation: 2
🔍 Use on: 1-hour to daily charts
💡 Purpose: Spot trend continuation or squeeze breakouts after consolidation
Best Settings for Long-Term Investing
Long-term investors are less concerned about short-term volatility.
- SMA Period: 50 or 100
- Standard Deviation: 2 to 2.5
🔍 Use on: Daily or Weekly charts
💡 Purpose: Identify major price extremes or long-term trend reversals
How to Choose the Right Settings
| Trading Style | SMA Period | Std Dev | Timeframe |
|---|---|---|---|
| Scalping | 10 | 1.5 | 1m–5m |
| Day Trading | 10–15 | 1.5–2 | 5m–30m |
| Swing Trading | 20–25 | 2 | 1h–1D |
| Position | 50–100 | 2–2.5 | 1D–1W |
Test different settings on your preferred asset class and time frame to find what gives you the clearest signals.
✅ FAQs
Q1: What is the best period for Bollinger Bands?
The default is 20, but short-term traders may prefer 10 or 15 for faster reactions.
Q2: Can I change the standard deviation?
Yes. Lower deviation gives tighter bands; higher deviation creates wider bands.
Q3: Do different assets need different settings?
Yes. High-volatility assets like crypto may benefit from wider bands (higher deviation).
Q4: Is the default setting good for all strategies?
It’s a solid starting point, but fine-tuning improves performance based on your style.
Q5: Should I optimize settings manually or use backtesting?
Always test your settings using backtesting tools or demo accounts before live trading.
