TA Challenge: Part 1 - Bollinger Bands: strategies

I will present this challenge in 3 parts. Part 1 - strategies, Part 2 - patterns and Part 3 - applications.
Bollinger Bands are volatility bands placed above and below a moving average (usually MA20). They comprises of 3 bands - upper band, middle band and lower band. The middle band is the MA20. The upper and lower bands represent 2 standard deviations above and below the middle line. About 95% of price moves that have occurred recently are contained within these bands. They are shown below.

Bollinger Bands can be used to determine the strength of the trend, determine overbought and oversold levels, determine resistances and supports, and for monitoring of breakouts.
Strategies
Dynamic resistance and support levels
The upper and lower bands can act as dynamic resistance and support levels.
Overbought and oversold levels
When the price breaks below the lower band, prices may have fallen too much and are due for a rebound. On the other hand, when the price breaks above the upper band, the stock may be overbought and due for a pullback.
Bollinger Bounce
The price tends to return to the middle of the bands. When the price reached the top of the upper band, it tends to return to the middle band. Likewise when the price reached the bottom of the lower band, it tends to return to the middle band. The reason these bounces occur is that the Bollinger Bands act like dynamic support and resistance levels. The longer the time frame you are in, the stronger these bands tend to be. This is best used when the market is ranging and there is no clear trend. This is shown below.

Bollinger Squeeze and Breakouts
Bollinger Bands tend to periods of low and high volatility where they squeeze and expand. When the bands squeeze together, it usually means that a breakout is getting ready to happen. If the prices start to break out above the upper band, then the move will usually continue to go up. If the prices start to break out below the lower band, then the price will usually continue to go down. These are shown below.

Stay tuned for parts 2 and 3.