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 time zone 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 and fluctuate in this area. This market is the most lethal to friends who make trends, and often loses money on their faces. At this point, our trading strategy is to wait and see in an empty position to avoid this volatile market.
6. Necking state of cotton peach channel. When the price rises and falls after a period of time, it will enter a range of shocks, and the price range of shocks 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. In this case, the general market fluctuations are not large and irregular. Our trading strategy at this time is to wait and see.
7. The sudden expansion of the cotton peach channel after necking. After a period of shock consolidation, 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. the false breakthrough market of 8.BOLL channel. 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 analyzed by BOLL channel technology. As a trend tracking indicator, the period of the BOLL channel we choose should be in weeks. When the price runs unilaterally, in order to avoid unnecessary losses caused by the big callback, we use the daily BOLL channel as the basis for our appearance when we make rich profits. Only in this way can we grasp the big market and stop the loss in time!