Opening represents the rapid development of the market. Although investors hate volatile market and like trend market, the market often comes suddenly and will enter the market after being discovered and confirmed. Because the stop loss is too big to meet the profit-loss ratio, it is difficult to decide whether to chase more or less.
In the last hour, gold fell rapidly, and the bollinger band opened downward on the hourly chart. But after the close, it will enter the market to short. Under normal circumstances, the stop loss should be set above the front height of 1773, and the stop loss should be above 10 USD.
However, after understanding the opening principle of the Bollinger Band, it is only necessary to set it slightly above the middle rail, because once the gold price breaks through the middle rail during the callback, it can be confirmed that this wave of opening is false, and the sooner it appears, the better.
In fact, there is a better way to judge the direction of true and false openings, that is, to judge by the longer period of bollinger bands. It is the bollinger band indicator of the 20th issue of the 1 hour chart. If the chart is cut to 5 minutes, the opening can be observed more clearly after 20 periods of bollinger band transformation.
The same opening is clearer on the 5-minute chart. The stop loss can be set lower, and the activist can even set it a little above the lower rail of Bollinger Band 240. If the price returns to the inside of the bollinger band, it means that the big opening has come to an end for the time being, and you can consider closing the position at a profit.
Closing position and stop loss skills
The bollinger band indicator enters the closing stage, and the previous market trend will temporarily come to an end, and the market will enter the reversal stage or temporary callback. If you have a compound position, it is recommended to close the position by half. If the market outlook breaks through the middle track again, it is better to close all positions.
After the bollinger band enters the closing stage, the market will generally fall into shock consolidation, with little market fluctuation. Short-term interval operation is the main operation, and the stop loss can be set above and below the highest and lowest visual points. The closing stage is a good opportunity for high-throwing and low-sucking operations.
Three-track co-direction and stop loss technology
After closing, if the middle rail can be an effective support resistance, the three rails are in the same direction. The same direction of the three tracks is an extremely strong and stable performance of the market, and it is also a time to test the patience of investors. This situation is also like a fire in Sakata tactics, firmly grasping the position of profit, and the middle track has become a good position to add positions, and it has also become a reference point for profit stop loss until it falls below the middle track of the Bollinger Band.
Closing position and stop loss skills
When the market falls into shock consolidation, especially in a narrow range, the bollinger band will level off. Going flat is the most beautiful but the most difficult market in the bollinger band, because it faces the risk of opening the bollinger band at any time. According to the tactical guidance of Sakata tactics, it is better to sit tight and wait and see. However, if this happens in early trading, some scalp scraping operations can be carried out, and the stop loss setting is relatively loose. Normal operation still needs to wait patiently for the opening direction of the bollinger band.