What are Bollinger Bands?

Bollinger (Boll) indicator is one of the common tools for technical analysis of the stock market. It calculates the "standard deviation" of the stock price and then finds the "trust interval" of the stock price.

Basic Information

Chinese name

Bollinger

Foreign name

Boll

Be applicable

share price

Bollinger Bands

20

Consists of 4 lines, divided into B1 line, B2 line, B3 line and B4 line. B1 line is the index (or stock price)

Among all indicator calculations, the calculation method of the BOLL indicator is one of the most complicated, which introduces the concept of standard deviation in statistics, which involves the mid-track line (

Bollinger opening

Actually use

Bollinger line has the following major functions:

1, Bollinger line can indicate support and pressure position; 2, Bollinger line can display

The three trajectories of the Boll indicator can be regarded as

In the safe channel of the market, the exchange rate generally fluctuates in this safe channel.If the exchange rate breaks through the upper and lower tracks in the boll channel, it means that the current market changes are more intense, otherwise it means that the current market is becoming stable. Using the three tracks of the Bollinger Band The distribution relationship of lines can help traders analyze market conditions. The specific application method is as follows:

1. When

Bollinger aka

Under normal circumstances, the use of Bollinger Bands to buy and sell, the success rate of the operation is far better than using KDJ, RSI or even moving averages to buy and sell. The clever use of Bollinger's trading can keep us away

The use of the Bollinger Line BOLL is as follows:

1. When the stock price runs above the middle rail, it is in a safer state, and you can wait and see in the short term.

2. The stock price is in a more dangerous state when it runs below the middle rail. In the short term, it should leave the market when it rebounds from the middle rail.

3. After the stock price breaks the upper trajectory, it does not fall below the middle trajectory when it goes back to the middle trajectory, indicating that the market outlook is bullish and that it can hold shares or increase positions.

4. After the stock price breaks below the lower trajectory, it does not stand back above the middle trajectory when it rebounds from the middle trajectory, the market outlook is bearish and it is necessary to sell.

5. When the channel suddenly narrows and collapses, it indicates that the direction of the stock price will undergo a major turn. At this time, the market will be judged by combining with other index technologies.