How to treat the bollinger band? What's the use of bollinger bands? It is mainly composed of three lines, of which the upper and lower lines can be regarded as the pressure line and the support line of the stock price respectively, and there is also an average line of the stock price between the two lines. (BOLL) consists of three lines: upper rail (yellow line of BOLL), middle rail (white line of BOLL) and lower rail (purple line of BOLL).
The role of bollinger bands
1. Using statistical principles, the standard deviation of stock price and its confidence interval are obtained, so as to determine the fluctuation range and future trend of stock price.
2. Use bands to display the safe price of stock prices.
3. It consists of upper, middle and lower tracks, and the middle track represents the main trend of the market. Play the role of support and pressure.
How to treat the bollinger band index?
Several common signals of bollinger bands;
1. In general, the trend of the middle line of the Bollinger Band may represent the broader trend of the foreign exchange market.
2. If the stock price constantly touches the upper rail line and often breaks through the upper rail line, it shows that the market price is on the rise, and so is the downward trend.
3. When the bollinger band is in an accelerated tightening state, it indicates that the market may have a reversal signal. At this time, investors are advised to analyze and judge several different technical indicators at the same time. If other indicators have no obvious selling signal, they may just indicate a continuous signal.
4. When the Bollinger Band has been expanded for a period of time, the market may be consolidating or reversing, and it is less likely to maintain a continuous state.
5. When the market is in a consolidation period, the bollinger band tends to shrink and the moving average tends to be stable. However, when the bollinger band shrinks faster and faster, it must be comprehensively judged by combining other indicators, and at the same time pay close attention to the changes in the news, which often indicates a breakthrough in the market.
6. If the daily chart in the K-line chart gradually approaches the upper rail line of the bollinger Band and is above it, it can often be judged that the market is on the rise, while the daily chart gradually enters the lower rail line of the bollinger Band and is below it, it can be judged that the market is on the decline.
How to treat the bollinger band? What's the use of bollinger bands? If you want to buy stocks, you must learn to look at stocks first. In addition, be sure to communicate with others more, or use software to assist your own judgment. Band artifact is the most commonly used by retail investors, in which you can not only have band signal reminders, but also see other people's position strategies.