Investing With IBD Ep. 333 These Tools Can Help You Trade With Machine-Like Precision
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Aug 13, 2025 
John Bollinger, president of Bollinger Capital Management and inventor of Bollinger Bands, shares his insights on trading with precision. He discusses the emotional pitfalls of trading and the advantages of a mechanical trading system. The conversation dives into mastering volatility, utilizing technical indicators effectively, and introducing the Trident Portfolio Strategy for better diversification. Bollinger also highlights the importance of adapting to market dynamics and the value of analytical tools in deciphering stock volatility.
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Add On Two-Bar Reversals
- When strong stocks pull back to the lower band, wait for a two-bar reversal to add or re-enter.
- Use a bar that closes outside the lower band followed by one closing back inside as your entry signal.
Prefer Daily And Weekly Timeframes
- Use daily and weekly charts for longer-term swing trading to avoid excessive trading costs and noise.
- Focus on multi-week to multi-month moves to capture significant capital gains and reduce trading friction.
Tight Bands Signal Trend Births
- Very tight Bollinger Bands often precede new trends, while very wide bands signal trend exhaustion.
- Monitor bandwidth as a leading clue for squeezes and potential trend births or deaths.