Stock is a kind of valuable securities, which is a stock certificate issued by a joint-stock company to its investors when raising capital, representing its holder's ownership of the joint-stock company. Buying stocks is also part of the business of buying enterprises, which can develop and grow together with enterprises. Today, Bian Xiao will share with you what the narrowing of the stock bollinger Band means, for your reference only!

What does the narrowing of the stock bollinger Band mean?

Under normal circumstances, if the Bollinger Band gradually narrows and appears in the downward trend of stocks, it means that the difference between the highest price and the lowest price in the stock price is very small, and the stock market trading volume is in a downturn, indicating that the short-selling power of stocks is gradually weakening. Once the subsequent stock volume increases and the bollinger band gradually expands, then the stock price will have a high probability of rising.

If the bollinger band gradually narrows and appears in the upward trend of stocks, it shows that stocks have moved from the previous upward trend to the adjustment trend, the difference between the highest price and the lowest price of stocks has gradually narrowed, and the intraday trading volume of stocks has also gradually decreased, indicating that the bullish power of stocks has gradually weakened. Once the follow-up stocks fall below, the bollinger band opens wider and the stock price is likely to fall.

What are the conditions for stock selection?

Condition 1: Different trends have different choices.

When rising, choose stocks in the sector; The stocks that break through during consolidation are better; I won't do the plate when it falls. Even if I do, I won't mention those stocks other than leading stocks.

Condition 2: Choose leading stocks.

If you can't make money on leading stocks, how can you make money on other stocks? Even if I want to do the whole thing, I still have relatively concentrated chips as the leader. Similarly, even in markets such as oversold and rebound, chips are the most concentrated.

Condition 3: Try to buy it at the end of the day.

After the graphics of this day are finished, we can simply see our intentions without being confused.

Condition 4: Don't be intimidated by the Dayang Line.

There are always a few stocks with the highest increase, which will be good tomorrow and the day after tomorrow.

Condition 5: Reference market.

The analysis of the market is much simpler than that of individual stocks. The bull market is long and the bear market is long.

Condition 6: Don't believe that you buy more and more.

After quantifying the risks, we can find that the more you buy, the more risks you have. If it falls to the stop loss level, sell decisively.

Why do stocks need to increase their positions instead of opening them all at once?

There are usually several situations that need to be added:

(1) The amount of funds is too large, and it is likely to be discovered once it enters the market. Take Qiangmai as an example. If it is opened more than 150 at a time for several days, it will be easily targeted and eaten by institutions. At this time, it is necessary to adopt the skill of adding positions in pieces.

(2) When the fundamental changes are discovered, but the technical aspects have not been reflected-as we all know, the speculative market is not always rational, and often has its emotional side. For example, when the basic orientation is good, the graphics often shake again, and may even fall down, and vice versa. At this time, if you want to occupy a favorable position and don't want to bear more shock risks, you must adopt the technique of phased investment.

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