In the stock market, many investors analyze stock conditions through technical aspects and use different technical indicators for reference, resulting in many combinations of technical indicators for observation and reference, providing technical information for investors' transactions. Today we will share with you a mid-line technical indicator combination--MACD+BOLL (Bollinger Band) technical indicator combination. So how to use the MACD+BOLL (Bollinger Band) technical indicator combination?
First of all, MACD and BOLL (Bollinger Bands) are technical indicators that mainly focus on market trends. They use different characteristics to observe the trend of the market or individual stocks or the mid-line buying and selling points of individual stocks. reference. Two technical indicators will generate signals that can be used as mutual reference to improve the effectiveness of technical indicator signals.
1. Bull buying point reference for the MACD+BOLL (Bollinger Band) technical indicator combination
In the MACD technical indicator, DIFF (white line) and DEA (yellow line) are both in Above the 0-axis, DIFF (white line) crosses DEA (yellow line) from bottom to top, and the graph is in the stage where the green column interval changes to the red column interval (negative to positive), forming a "golden cross" in the MACD graph. In addition, when the third line of the BOLL (Bollinger Band) indicator is in an upward trend and the stock price is below the midline and close to the high line, it is a bullish stock trend in the technical graphics combination.
When the above conditions are met, the "golden cross" in the MACD technical graph plus the BOLL (Bollinger Band) indicator stock price is at the mid-line and high-line and rises at the same time, and the stock price effectively breaks through the high-line. An upward trend is formed. The larger the upward opening, the stronger the continuity, which indicates a reference buying point opportunity signal for a combination of technical indicators. The "Golden Cross" reference is more effective. When a combination of technical graphics forms a buying signal, the BOLL (Bollinger Band) low line will form a supporting technical graphics reference.
2. Selling point risk reference of MACD+BOLL (Bollinger Band) technical indicator combination
In the MACD technical indicator, DIFF (white line) and DEA (yellow line) are both in Below the 0 axis, DIFF (white line) crosses DEA (yellow line) from top to bottom, and the graph is in the stage where the red column interval changes to the green column interval (positive to negative), forming a "death cross" in the MACD graph. In addition, when the third line of the BOLL (Bollinger Band) indicator is in a downward trend and the stock price is below the midline and close to the low line, it is a short stock trend in the technical graphics combination.
When the above conditions are met, the "dead cross" in the MACD technical graphics plus the BOLL Bollinger Band indicator will cause the stock price to be at the midline and low line and fall simultaneously, and the stock price will effectively fall below the low line. In a downward trend, the larger the downward opening, the stronger the continuity, which indicates the reference selling point risk signal of the technical indicator combination, and the "dead cross" reference is more effective. When a combination of technical graphics forms a selling point signal, the BOLL (Bollinger Band) high line will form a pressure technical graphics reference.
In general, the technical indicator combination MACD+BOLL (Bollinger Bands) is a technical indicator combination that refers to the market's midline trend buying and selling points. However, investors should note that there are no perfect technical indicators and technical graphics in the market, and there will be some misleading information. They need to be combined with other indicators, market environment and individual stock conditions for reference.
(The stock market is risky, investment needs to be cautious)