Pair Bollinger Bands with RSI, MACD, volume, moving averages, or the stochastic oscillator to filter false signals and add directional confirmation.
RSI is the most common companion: when RSI is above 70 with price touching the upper band, the market is likely overbought and due for a reversal; when RSI is below 30 at the lower band, it signals oversold conditions.
Research shows the RSI combination can improve win rates to roughly 55% compared to using Bollinger Bands alone.
MACD adds momentum confirmation for breakouts and squeeze plays.