Second, the significance of the upper, middle and lower trajectories of BOLL index:
1 and BOLL indicators show that the moving range of the stock price channel formed by the upper, middle and lower rails is uncertain, and the upper and lower limits of the channel change with the fluctuation of the stock price. Under normal circumstances, the stock price should always run in the stock price channel. If the stock price runs out of the stock price channel, it means that the market is in an extreme state.
2. In the BOLL indicator, the upper and lower tracks of the stock price channel are the highest and lowest prices that show the safe operation of the stock price. The upper rail, middle rail and lower rail can all support the operation of the stock price, and the upper rail and middle rail sometimes put pressure on the operation of the stock price.
3. Generally speaking, when the stock price runs above the middle rail of the Bollinger Band, it indicates that the stock price is in a strong trend; When the stock price runs below the middle of the bollinger band, it shows that the stock price is in a weak position.
Third, the index strategy:
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 means that the stock price is in 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.
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.
6.BOLL should be used more effectively with KDJ indicators.
Fourth, the calculation formula:
Intermediate trajectory =N-day moving average
Upper trajectory = middle trajectory+double standard deviation
Lower trajectory = middle trajectory-double standard deviation
Standard deviation MD= square root (N- 1) The sum of two squares of the current day (c-Ma) divided by n.