The general application law of the Bollinger Band is that when the stock price breaks through the support line downwards, the buying point appears and the selling point breaks through the resistance line upwards. The moving average is an important support or resistance to test whether a trend can be sustained. This law has a good indication in the consolidation or upward trend, but in the downward trend, the breakdown of the lower support line is not a real buying point.
First, within the normal range, the technology and methods used in the bollinger Band.
1, the selling point signal when the stock price crosses the upper pressure line;
2. When the stock price crosses the support line below, buy some signals;
3. When the stock price crosses the middle limit from bottom to top, it is an overweight signal;
4. When the stock price crosses the midline from top to bottom, it is a selling signal.
Second, use a unilaterally rising bollinger band.
In a strong market, the stock price rises continuously, usually between BOLB 1 and BOLB2. When the stock price rises continuously for a long time, it crosses BOLB 1, crosses BOLB 1 the next day and further breaks BOLB2, which drives the BOLB 1 curve, and there is an obvious turning point from rising to flattening. This is the selling signal.
Three, in the weak market application should pay attention to the following points:
1, the stock price should not cross the support line as a buying signal, but the lowest price of a stock should cross the lower rail of the Bollinger Band as a signal to initially pay attention to this stock.
2. After the primary election signal appears, the stock price will generally be adjusted back. If the stock price correction does not effectively penetrate the lower rail, the bollinger band support line turns head up. At this time, it can be initially confirmed as a buy signal.
3. The final confirmation of the buying signal is mainly to observe whether the trading volume can be appropriately enlarged.
4. Pay attention to whether the width of the bollinger band is in a convergent state, which is also an important factor for signal confirmation.
Four, the use of bollinger bands matters needing attention
1, the bollinger band parameter setting shall not be less than 6, and the static dry heave value is usually10; Dynamic stem length is generally set to 20.
2. When using the bollinger Band, pay attention to whether it is in the normal area or the abnormal area. In the abnormal area, we can't simply follow the principle of breaking the upper limit and buying the lower limit.
3. It is easy to catch bull stocks by narrowing the opening at a low level, but at a high level or once it is reduced, the stock price will break down and there will often be more room for decline.
4. Bollinger Bands can be used in conjunction with other indicators, and the effect will be better, such as volume and KDJ indicators.
Bollinger Bands and Stock Selection
Using bollinger bands for stock selection is mainly to observe the opening size of bollinger bands.
Don't rush to buy the stocks with a small opening on the Bollinger Band, because the Bollinger Band only tells us that these stocks will break through at any time, but doesn't tell us the direction of the stock price breakthrough.
The method of judging the direction of stock price rise and fall when the bollinger band narrows;
① Observe whether the stock price was running above or below the middle rail at that time, or showed signs of falling below the middle rail, or stood on the middle rail obviously. When the stock price moves upward, it should be viewed in combination with whether the volume of transactions is obviously enlarged. If there is, it should be decisively involved. On the contrary, once it falls below the middle track or the lower track, it is necessary to sell it decisively.
(2) Observe the stock price of this stock in recent months. If there has been a small rise before, it is more likely that the callback will stabilize the middle track and then rise again. If there has been a huge rise before, we should be wary that the narrowing of the bollinger Band is only in the middle of the decline, and there is still the possibility of a sharp plunge afterwards.
If the following conditions are met, the possibility of upward breakthrough is greater:
First, the fundamentals of listed companies are good.
Second, the stock price should stand on the moving average of 250, 120, 60, 30, 10.
Third, it is best to choose stocks with relatively low stock prices.
Fourth, the best time to buy is after the stock price breaks through and the bollinger band indicator opens wider.
Today, when the fluctuation cycle of the stock market is prolonged, the 20-day moving average represented by the Brin Middle Track can provide stronger practical guidance for the band trend and trading points of heavyweights and hot stocks within two to four weeks.
The specific points are as follows:
1. After a long-term sharp decline, Brin's middle track leveled off, showing an upward inflection point, and the stock price was above the middle track within 2-3 days. At this time, if the stock price is adjusted back, the low point of its retracement is often the short-term entry point with moderate low suction. If there is cooperation in trading volume, investors can actively absorb it.
2. For strong stocks running between the middle rail and the upper rail of Brin, it is advisable to take the middle rail withdrawal as a low buying point and the middle rail as its important stop loss line.
3. The volume and price match well for a period of time, and the cumulative volume of the interval Yang line is higher than that of the Yin line. The stock price was relatively moderate and heavy in the early stage.
4.k-line combination has more positive lines than negative lines, and the entity of positive lines is longer than negative lines. It would be better if the stock price has an arc bottom, a double bottom, a head-shoulder bottom and a composite bottom.
5. If the stock price breaks through the upper rail of Brin for three consecutive days or rushes out of the upper rail too much, the trading volume cannot be released continuously, and investors should pay attention to short-term high selling.
C. bollinger band and band operation
1. If the stock price runs above the middle rail, the opening of the Bollinger Band gradually narrows, and the upper rail, the middle rail and the lower rail gradually approach. When the numerical difference between the upper rail and the lower rail is close to 10%, it is the best buying opportunity. If the trading volume is obviously enlarged at this time, the signal of the upward breakthrough of the stock price is more clear.
2. When there is a short-term correction after the stock price rises moderately, the stock price is blocked near the upper rail and then returns to the middle rail of the Bollinger Band. If you stand on the middle track for three consecutive days, you can consider intervening.
3. When a stock has been rising steadily along the middle and upper rail of the Bollinger Band, it is mainly holding shares or attracting low, because this shows that the stock is in a strong bullish trend.
4. When a stock always goes down along the middle and lower rails of the Bollinger Band, it means that the stock is in the process of falling, and it is not appropriate to buy it easily. Wait patiently for the real buying opportunity until the stock price falls out of the lower rail of the Bollinger Band or stands firm in the middle rail before considering intervention.
D. Grasp the bollinger Band and intraday trading points
Combined with time-sharing, the bollinger band can grasp the trading points in the session. According to the most general rule, the stock price will rebound when it breaks the upper track, and will rebound when it breaks the lower track. The daily parameter is always 20 days. As long as it falls below the bollinger band for three consecutive days, there will inevitably be a corresponding rebound, and the accuracy rate applied to individual stocks is above 90%.
To grasp the intraday trading point of individual stocks, we often choose the resonance point of 15-minute bollinger band and 30-minute bollinger band. First of all, the bollinger band should maintain an ascending channel in shape, preferably an open rail. The stock price goes down along the upper rail, so find the bollinger band of 15 minutes, find the position of the middle rail, and then look at the position of the middle rail in 30 minutes and 60 minutes. If there are multiple overlaps in stock positions, then a certain resonance point will inevitably be formed in this position, which should be the best buying point.
Using bollinger bands to find selling points is much better than MACD. The middle rail is standard. The vertical line falls below the 15 minute middle line, which basically means that the short-term speculation is completed. Once it falls below the 30-minute median, the stock price will be adjusted for a period of time. Therefore, short-term friends should leave as soon as possible after crossing the middle track and wait for the callback before finding a low point.