Which one is easier to use, moving average or Bollinger Bands_How to understand Bollinger Bands

Some people use different indicators in the stock market, and in the stock market, investors in addition to the basics of stocks In addition to analyzing individual stocks based on surface and market news, some technical indicators are also used to analyze individual stocks. The following is the editor's summary of which moving average or Bollinger Band is better to use. It is for reference only and I hope it can help you.

Which one is better, moving average or Bollinger Bands?

The moving average is the moving average, referred to as MA. MA uses statistical analysis methods to average the security prices (index) within a certain period of time. , and connect the average values ??of different times to form an MA, a technical indicator used to observe the trend of security price changes. The Bollinger Bands (Boll) indicator is one of the commonly used tools for stock market technical analysis. It calculates the "standard deviation" of the stock price and then finds the "confidence interval" of the stock price.

What about the boll indicator?

In fact, in the stock market, both moving averages and Bollinger Bands are easy to use. Both are simple, but the Bollinger Bands are simpler than the moving average. The upper track of the Bollinger Bands , the middle rail and the lower rail have been defined. The coefficients of the short-term, mid-term and long-term moving averages can be appropriately modulated according to your own operations, which is relatively flexible.

The boll indicator draws three lines on the graph. The upper and lower lines can be regarded as the pressure line and support line of the stock price respectively, and there is an average line of the stock price between the two lines, which is The parameters of the tree line indicator are best set to 20. Generally speaking, the stock price will run in the channel formed by the pressure line and the support line. The three buying patterns of the boll indicator are that the stock price is supported by the middle rail, the stock price falls below the lower rail, the bell mouth opens, and the stock price breaks through the middle rail.

How to understand the Bollinger Bands

Generally, when the third line of the Bollinger Bands indicator is in a downward trend and the stock price is running between the middle line and the low line, it means that the stock price is falling. On trend. When the third line of the Bollinger Bands indicator is in an upward trend and the stock price is running between the middle line and the high line, it means that the stock price is in an upward trend.

The Bollinger Bands indicator calculates the fluctuation range of stock price trends through statistics of the standard deviation of cyclical stock price changes. If the middle line and the high line of the Bollinger Bands indicator rise at the same time, it means that the stock price is likely to turn to an upward trend. The larger the upward opening, the stronger the continuity, and the greater the chance of the stock price continuing to rise.

If the middle line and low line of the Bollinger Bands indicator go down at the same time, it means that the stock price is likely to turn to a downward trend. The larger the opening of the decline, the stronger the continuity, and the greater the risk of the stock price falling continuously. The opening shapes of Bollinger Bands indicator graphics are different, and the market signals given are also different.

If the midline of the Bollinger Bands indicator continues to intersect with the market price, it means that the target is in a volatile consolidation market, and investors need to wait and see with short positions at this stage to wait for the market trend direction. The above is the content related to the Bollinger Bands view. Once you learn to grasp the daily limit, say goodbye to losses.

How to read the stock boll line

The Bollinger Band indicator is divided into high line, mid line and low line. The high line of the Bollinger Bands can be used as a reference for the pressure level, while the low line can be used as a reference for the support range. In addition, the BOLL indicator consists of three lines, namely the upper rail line, the middle rail line, and the lower rail line.

Generally, when the third line of the Bollinger Bands indicator is in a downward trend and the stock price is running between the midline and the low line, it means that the stock price is in a downward trend. When the third line of the Bollinger Bands indicator is in an upward trend and the stock price is running between the middle line and the high line, it means that the stock price is in an upward trend.

The Bollinger Bands indicator calculates the fluctuation range of stock price trends through statistics of the standard deviation of cyclical stock price changes. If the middle line and the high line of the Bollinger Bands indicator rise at the same time, it means that the stock price is likely to turn to an upward trend. The larger the upward opening, the stronger the continuity, and the greater the chance of the stock price continuing to rise.

If the middle line and low line of the Bollinger Bands indicator go down at the same time, it means that the stock price is likely to turn to a downward trend. The larger the opening of the decline, the stronger the continuity, and the greater the risk of the stock price falling continuously. The opening shapes of Bollinger Bands indicator graphics are different, and the market signals given are also different. If the midline of the Bollinger Bands indicator continues to intersect with the market price, it means that the target is in a volatile consolidation market, and investors need to wait and see with short positions at this stage to wait for the direction of the market trend.