Under normal circumstances, when the third line of the Bollinger Band indicator is in a downward trend, the stock price runs between the middle line and the low line, indicating that the stock price is in a downward trend. When the third line of the Bollinger Band indicator is on the rise, the stock price runs between the middle line and the high line, indicating that the stock price is on the rise.
The bollinger band, the bollinger band indicator, was created by Mr. John Brin. The bollinger band is also called the bollinger band, which uses the statistical principle to find out the standard deviation of the stock price and its confidence interval, thus determining the fluctuation range and future trend of the stock price, and using the band to represent the safe high and low price of the stock price. The upper and lower limits are not fixed, but change with the stock price rolling. Like Mike's indicator, the Brin indicator belongs to the path indicator, and the stock price fluctuates in the upper and lower range. The width of this band varies with the fluctuation of stock price. When the stock price rises and falls, the banded region becomes wider, the fluctuation range becomes narrower and the banded region becomes narrower when it is consolidated.
Trajectory relationship:
1. When the upper, middle and lower rails of the Bollinger Band run upward at the same time, it shows that the strong characteristics of the stock price are very obvious, and the stock price will continue to rise in the short term. Investors should resolutely hold shares to rise or buy on dips.
2. When Brin runs down with the upper and lower rails at the same time, it shows that the weakness of the stock price is very obvious, and the stock price will continue to fall in the short term. Investors should resolutely wait and see or sell on rallies.
3. When the upper rail of the Bollinger Band runs downward, while the middle rail and the lower rail are still running upward, it shows that the stock price is in a consolidation trend. If the stock price is in a long-term upward trend, it shows that the stock price is a strong consolidation on the way up, and investors can wait and see or buy short-term on dips; If the stock price is in a long-term downward trend, it shows that the stock price is a weak consolidation on the way down, and investors should wait and see or lighten their positions on rallies.
4. The upper rail of the Bollinger Band runs upward, and the middle rail and the lower rail run downward at the same time, indicating that the stock price will experience a round of decline, and the extent of the decline is determined by the size of the opening. On the contrary, the lower rail of the Bollinger Band runs downward, and the middle rail and the upper rail run upward at the same time, indicating that the stock price will experience a round of rise, and the extent of the rise is determined by the size of the opening. There is no discussion here.
5. When the upper, middle and lower rails of the bollinger Band run horizontally almost at the same time, it depends on the current trend of the stock price.