Practical methods and skills of Bollinger Bands indicators

The Bollinger Bands indicator (BOLL) calculates the "standard deviation" of the stock price, and then obtains the "confidence interval" of the stock price. The indicator draws three lines on the graph, of which the upper and lower lines can be regarded as the pressure line and the support line of the stock price, respectively, and there is a stock price average line between the two lines. Generally speaking, the stock price will run in the channel formed by the pressure line and the support line. When applying this indicator, the focus is on the movement of the fluctuation band and the crossing of the index or stock price to the fluctuation band. Generally speaking, when the fluctuation band of the Bollinger Bands moves horizontally, it can be regarded as the current trend is mainly sideways, which belongs to the "normal range". In this case, when the stock price crosses the "upper rail" upwards, it often forms a short-term correction, which can be regarded as a short-term sell signal; when the stock price crosses the "lower rail" downwards, it is easy to form a short-term rebound, which is a short-term buying opportunity. However, after a period of sideways movement of the stock price, if there are signs of narrowing of the fluctuation band of the Bollinger Band, that is, when the "upper rail" and "lower rail" move closer to each other, it means that the market will start to change. At this time, if the stock price crosses the "upper rail" continuously, it means that the stock price will move in the upward direction; and when the stock price crosses the "lower rail" continuously, it means that the stock price will move in the downward directionIEXSforeign exchange marketIn the analysis, Bollinger Bands are also one of the commonly used technical tools. The use of Bollinger Bands indicators to select stocks is mainly to observe the size of the Bollinger Bands indicator opening, and more attention needs to be paid to those stocks whose opening gradually becomes smaller. Because the opening of the Bollinger Bands indicator gradually decreases, the rise and fall of the stock price gradually decreases, and the forces of the long and short sides tend to be consistent, and the stock price will choose the direction to break through, and the smaller the opening, the greater the strength of the stock price breakthrough.

Purpose:

The indicator uses bands to indicate safe highs and lows. Stocks move within the "upper" and "lower" bands, which widen when prices rise and fall more, and narrow when they fall less.

How to use:

1. When crossing the "upper limit" upward, a short-term retracement will be formed, which is a short-term selling opportunity.

2. When the stock price crosses the "lower limit", a short-term rebound will be formed, which is a short-term buying opportunity.

3. When the strip-shaped area of the Bollinger Bands moves horizontally, it can be regarded as in the "normal range". At this time, two methods of use, 1 and 2, are used, and the reliability is quite high. If the strip-shaped area moves to the upper or lower right, it is out of the normal, and there is a special meaning.

4. When the band narrows, intense price fluctuations can occur at any time.