Under normal circumstances, the Brin track is upward, indicating a bullish trend; The bollinger band extends downward, indicating a short trend; However, when the Brin trajectory runs smoothly, it indicates that the stock price is in an integrated state. The middle rail of the bollinger band is the middle line of three bollinger bands. It is also the average price of 20 days on the daily chart. The Bollinger Band consists of three tracks: upper, middle and lower, and the price channel formed usually has the function of supporting and suppressing the K-line.
What are the precautions when using bollinger bands?
The precautions for using bollinger bands are as follows:
1. The setting of bollinger Band parameters should not be less than 6, and the static dry heave value is usually10; Dynamic money dragon is generally set at 20.
2. When using the bollinger Band, we should pay attention to judge whether it is in the normal area or the abnormal area. In abnormal areas, you can't simply break through the upper limit to sell and break through the lower limit to buy.
3. The opening price should be narrow, and it is easy to catch cows when it is low, but when it is high or once it is opened, the price will break down, and there will often be more room for decline.
4. The bollinger Band can be used with other indicators, and the effect will be better, such as volume and KDJ indicators.