1 introduction. Boll index was put forward by JohnBollinger at the beginning of1980s, which is widely used in technical analysis of stock, futures and foreign exchange markets. It can provide the upper and lower limits of the price and the turning point of the trend, and can automatically adjust according to the fluctuation of the market.
Boll indicator consists of the following three curves:
Middle Track: The middle track is a line obtained by calculating the moving average, and a simple moving average of 20 days is usually used as the middle track. Upper trajectory: the upper trajectory is the line obtained by adding twice the standard deviation to the middle trajectory, and the standard deviation is usually 20 days. Lower trajectory: The lower trajectory is the line obtained by subtracting twice the standard deviation from the middle trajectory. The function of Boll index is to predict the price trend by judging whether the price is between the upper rail line and the lower rail line. When the price exceeds the upper rail line, it may indicate that the price is too high, and there may be a callback or decline; When the price falls below the lower rail line, it may indicate that the price is too low and may rebound or rise.
2.2. Unilateral opening. Boll index means that under certain market conditions, the distance between the upper rail line and the lower rail line is gradually expanding, and the price continues to develop in one direction, forming an obvious unilateral trend. This situation usually indicates that the market trend is increasing and the price may continue to move in the same direction.
There may be two different trends in the case of unilateral opening:
Upward trend: When the price continues to break through the upper rail line and the distance between the upper rail line and the lower rail line gradually expands, it may indicate that the upward trend of the market is strengthened. At this point, investors can consider increasing their buying positions appropriately to seize the rising market. Downward trend: When the price continues to fall below the lower rail line and the distance between the upper rail line and the lower rail line gradually expands, it may indicate that the downward trend of the market will be strengthened. At this point, investors can consider increasing their selling positions appropriately to seize the falling market. It should be noted that the unilateral opening of Boll indicator is not an absolute trend judgment, and there are still risks in the market. Investors should comprehensively consider other technical indicators and fundamental factors when making decisions.
3. How to use the Boll indicator to open your mouth and go unilateral? When applying the Boll indicator, the following points deserve investors' attention:
Confirm the trend: first, confirm whether the market trend is obvious and whether the distance between the upper rail line and the lower rail line is gradually expanding. Only when the trend is obvious can we judge the price trend more accurately. Combined with other indicators: Boll indicator is only an indicator to judge the market trend, and the market is affected by many factors. Investors should combine other technical indicators and fundamental factors for comprehensive analysis. Risk control: Risk control is a point that investors need to pay attention to. Even if the Boll indicator shows that the market trend is obvious, investors should still set a reasonable stop loss point to avoid the losses caused by price reversal. Boll indicator is a commonly used technical analysis tool, which helps investors to make buying and selling decisions by judging the upper and lower limits of prices and the turning point of trends. When the Boll indicator is unilateral, it may indicate the strengthening of the market trend, and investors can operate accordingly according to the specific situation. The market is still risky, and investors should comprehensively consider other factors and control the risks reasonably.