BOLL indicator can indicate support level and pressure level, and show overbought and oversold, as well as trends and channels. It has many functions, is very effective and easy to use. BOLL index can be widely used in most financial time series, including but not limited to stock analysis, and also has a good guiding role in foreign exchange, options, commodity futures, stock index futures and other investment targets. Among many technical analysis tools, BOLL indicator is one of the most commonly used and intuitive analysis tools. Even entry-level investors can quickly master the skills after learning.
BOLL index can be used as a separate trading system, which is unmatched by other technical indicators in stock selection and trading. We will discuss how to use the BOLL index formula to select stocks in later chapters.
For new and old investors, people familiar with trading software will be familiar with BOLL indicators. Bohr index, also known as Bollinger's belt, is named after the surname of john bollinger, the founder of the index. It was invented in the 1970s, and it has been more than forty years now, but it is still widely used.
All kinds of markets are interactive and interrelated, and all kinds of changes within and between markets are relative, and absolute changes do not exist.
Based on this concept, the original intention of BOLL index design is to pursue "relative perfection". Its goal is not to help users find the lowest buying point and the highest selling point, but to find an acceptable "relatively perfect" transaction according to the BOLL indicator channel and the position relationship between the stock price and the BOLL line.
The BOLL indicator was developed with the 20-day moving average, which shows that it was born to judge the medium and long-term stock price movement trend. BOLL index is a channel around the fluctuation of stock price. john bollinger introduced Einstein's theory of relativity into his analysis and gave a new interpretation to the concept of market price.