The Bohr Line was created by Mr. John Brin. It uses the principle of statistics to find out the standard deviation and confidence interval of the stock price, so as to determine the fluctuation range and future trend of the stock price, and uses the band to express the safe high and low price of the stock price, so it is also called Boll line.
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.
Extended data:
Application principle of bollinger band index
The bollinger band can show its safe high and low price.
When the volatility becomes smaller and the band becomes narrower, fierce price fluctuations may occur at any time.
When the high and low points cross the edge of the wave area, they immediately return to the wave area, and there will be a gear back.
After the band starts to move, entering another band in this way is quite helpful to find out the target value.
The application rules are as follows: when the stock price fluctuation of a stock is small for a period of time, it is reflected in the long-term narrowing of the stock price fluctuation range on the Bollinger Band. On a certain trading day, the closing price of the stock price broke through the bollinger band resistance line with a large turnover. At this time, the bollinger band obviously changed from closing to opening, and investors should buy decisively (as can be clearly seen from the K-line chart of the day).
This is because the stock has turned from weak to strong, and the short-term momentum will not last only one day. The short-term will inevitably have a new high and can be decisively involved.