The Bollinger Band consists of three track lines, of which the upper line and the lower line can be regarded as the pressure line (upper track) and the support line (lower track) of the stock price respectively, and there is a stock price average line (MID) between the two lines. Generally, the price line runs in a strip-shaped interval composed of upper and lower tracks, and the position of the track automatically adjusts with the change of price. When the band narrows, there may be fierce price fluctuations immediately, indicating that the change is imminent; If the high and low points cross the pressure line or support line and quickly return to the band, there will be a rebound or rebound.

Bollinger Bands have four main functions:

(1) bollinger bands can indicate support and pressure positions;

(2) The bollinger Band can show overbought and oversold;

(3) Bollinger bands can indicate trends;

(4) Bollinger Bands have channel function.

The theoretical application principle of the Bollinger Band is that when the stock price crosses the outermost pressure line (support line), it means that the selling point (buying point) appears. When the stock price rises (falls) along the pressure line (support line), although the stock price has not crossed, if it breaks through the second line, it is a selling point or a buying point.

Main trading rules of Bollinger Band:

(1) When the stock price crosses the downline from bottom to top, it can be regarded as a buying signal.

(2) When the stock price crosses the middle track from bottom to top, the stock price will accelerate to rise, which is a signal to increase the position and buy.

(3) When the stock price fluctuates between the middle rail and the upper rail (UPER), it is a bull market, and you can hold shares and wait and see.

(4) After the stock price runs between the middle rail and the upper rail for a long time, it falls below the middle rail from top to bottom as a selling signal.

(5) When the stock price fluctuates downward between the middle rail and the lower rail, it is a short market. At this time, investors should wait and see with money.

(6) After a long-term sharp decline, Brin's middle track leveled off and an upward inflection point appeared, 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.

(7) For the strong stocks running between the middle rail and the upper rail of Brin, it is advisable to pull back the middle rail as a low-absorbing buying point and take the middle rail as its important stop-loss line.

(8) Soaring stocks tend to run out of the upper rail of the Bollinger Band in a short time. Once they run out of the upper rail too much, the volume cannot be released continuously, so pay attention to short-term high throwing. If they fall back from the upper rail and fall below the upper rail, it is also a selling point at this time.

These can be understood slowly. Beginners can refer to relevant books and systems in the early stage to learn about it, and at the same time practice it with a simulation disk, so that theory can be practiced quickly and effectively to master skills. At present, Niu Gubao's simulation of stock trading is not bad, and many functions in it are enough to analyze the market and individual stocks, which is helpful to use. I hope I can help you, and I wish you a happy investment!