1. What is the boll indicator? Boll index is a technical analysis index proposed by JohnBollinger in 1980. It consists of three tracks, including the middle track and the upper and lower tracks. The middle track is a simple moving average, and the 20-day moving average is usually used. The upper and lower trajectories are obtained by adding and subtracting 2 times standard deviation on the basis of the middle trajectory. Boll index is mainly used to measure the volatility of stock price and the relative position of price, and to help investors judge the timing of buying and selling.
2. Calculation method of cotton boll index The calculation process of cotton boll index includes the following steps:
1. Calculate the 20-day moving average (middle track) of the closing price;
2. Calculate the standard deviation of the closing price;
3. Upper trajectory = middle trajectory +2 times standard deviation;
4. Lower trajectory = middle trajectory -2 times standard deviation.
3.boll indicator buying signal According to BOLL indicator, when the stock price breaks through the middle track from the lower track, a buying signal is formed. This means that the stock price has rebounded from the low level, and there may be a wave of rising prices. At this point, investors can consider buying financial assets.
4. The selling signal of the BOLL indicator According to the BOLL indicator, when the stock price breaks through the middle track from the upper track, a selling signal is formed. This means that the stock price has started to fall from a high level, and there may be a wave of decline. At this point, investors can consider selling financial assets.
5. Precautions for BOLL indicators When using BOLL indicators, you need to pay attention to the following points:
1.boll index is suitable for shock market and trend market, but it has poor effect in consolidation market;
2.boll indicator can only be used as an auxiliary indicator, not as a basis for trading alone;
3.3. The validity of BOLL indicators needs to be confirmed by combining other technical indicators and fundamental analysis;
4.4. The parameters of BOLL index can be adjusted according to market conditions, but over-fitting the parameters may lead to inaccurate signals.
Summary: boll indicator is a commonly used technical analysis tool, which helps investors to judge the trading opportunity by calculating the volatility of stock price and the relative position of price. When using boll indicators, we need to pay attention to the market type, the use of auxiliary indicators and the adjustment of parameters. Although boll index has some limitations, it can improve the accuracy of trading decision by combining other technical indicators and fundamental analysis.