1. When the price runs in the area between the middle rail and the upper rail of BOLL, as long as the price does not fall below the middle rail, it means that the market is bullish. At this time, the trading strategy we consider is to buy on dips and not consider shorting.
2. When the price runs in the area between the middle rail and the lower rail of BOLL, as long as the price does not break through the middle rail, it means that the market is in a short market. At this time, our trading strategy is to sell at every high point, regardless of buying.
3. When the price moves along the upper rail of BOLL, the market rises unilaterally. In this case, it is usually an explosion. If you hold more than one order, you must hold it. As long as the price does not leave the upper rail area, hold it patiently.
4. When the price runs along the lower rail of BOLL, the market drops unilaterally, usually rapidly. As long as the price does not deviate from the downward trend, all you have to do is wait patiently.
5. When the price runs in the middle rail area of BOLL, the market will fluctuate up and down in this area. This market is the most lethal to friends who make trends, and often loses money on their faces. At this time, our trading strategy is to wait and see and avoid this volatile market.
6.6 necking state. Bohr str. When the price rises and falls after a period of time, it will enter an interval of oscillation rest, the price area of oscillation will become smaller and smaller, and there will be three contraction tracks in the BOLL channel. This state is a sign before the big market comes. Our trading strategy at this time is to wait and see.
The sudden expansion of 7.7. Necked cotton peach groove. After the BOLL channel oscillates for a period of time in the state of shrinking, the BOLL channel will suddenly expand, which means that an explosive market has arrived, and then the market will enter a unilateral market. In this case, we can actively adjust our positions and open positions in line with the market.
8. Fake market breakthrough in 8. Bohr str. When the BOLL channel is tightened, before the big market comes, there will often be a false breakthrough market, which is a trap created by the main force before launching, and is usually called "bear trap" or "bull trap" in textbooks. We should be alert to this situation, and the best way is to eliminate risks through our position control. When we find this is a trap, we still have enough money and time to adjust our position!
The above are all kinds of situations that appear in the technical analysis of BOLL channel. As a trend tracking indicator, the period of the BOLL channel we choose should be the weekly line. When the price runs unilaterally, in order to avoid unnecessary losses caused by the big callback, we take the daily BOLL channel as the basis for going out after rich profits. This can not only grasp the big market, but also take profit in time!