Forex Technical Indicators - Baolijia Channel (BOL)

The Bollinger channel was published by John Bollinger. It effectively judges overbought and oversold situations. It is a product of further development on the basis of the moving average channel. The Bollinger channel is composed of an average line, the top of the channel at the top, and the bottom of the channel at the bottom. The top of the channel is added to the average with two standard deviations; conversely, the bottom of the channel is subtracted from the average with two standard deviations. When the price fluctuates greatly, the channel will automatically adjust and amplify; when the stock price fluctuates greatly, the Bollinger channel will be wider, and when the market conditions are stable, the channel will be correspondingly narrower.

The Bullica channel is the most commonly used indicator to determine buy and sell signals. It is better at judging buy and sell signals than other analytical indicators. The direction of the stock price will change significantly as the channel narrows. When the stock price rises or falls below this channel, this trend will continue. When the stock price forms a top or bottom pattern outside the channel, and then forms a top or bottom pattern inside the channel, it indicates that the trend will reverse. When the stock price falls from the top of the channel or stops falling from the bottom of the channel, its trend has the opportunity to challenge the top or bottom of another channel. The greatest use of this feature is to predict the target of the upper test or lower.

The PowerPlus channel is an auxiliary indicator displayed on the chart. The Qiankun candlestick will take 20 days as the standard parameter of the PowerPlus channel, and 14 and 21 candlesticks are also one of the commonly used parameter values.