Bollinger Band Graphic Analysis Bollinger Band Trend Tactics (Figure)

Bollinger Band is a commonly used stock market analysis tool, which can reflect the stock market trend more sensitively. How to set the bollinger band and what is the best parameter value of the bollinger band? The commonly introduced parameter is 20.

Setting principle of bollinger bands

The Bollinger Band was created by John Bollinger. Calculate the standard deviation of the stock price first, and then get the confidence interval of the stock price. This indicator and MIKE indicator are both "path indicators", and the stock price fluctuates within the range of "upper limit" and "lower limit", but Boll has only one "upper limit" and one "lower limit", so an average line of the stock price must be drawn on the actual graph.

How to set the bollinger band?

Different parameter settings of bollinger bands will result in different results. Good and representative parameters can fully reflect the trajectory of the stock price relying on the Bollinger Band, and the reference significance of the abnormal Bollinger Band is greatly reduced.

The Bollinger Band with the parameter set to (26,2) is more representative than the Bollinger Band with the parameter set to (20) displayed by most market software, and it also reflects the stock price operation more accurately. The orbit of parameter (20) is larger and wider, and the Bollinger Band of parameter (26, 2) is more sensitive and effective.

1. calculate MA

Ma = cumulative closing price of days /N days

Computational MD

MD = square root (n-day cumulative (closing price -MA) * (closing price -MA)/N)

3. calculate MB, UP, DN.

MB = I- 1 daily mobile authorization

Up = MB+2 * MD

DN = MB - 2 * MD