1. Home > >

Bollinger Bands Trading Guide


For the average investor, it cashback forex profit calculator enough to grasp what is happening in the current cashbackforexprofitcalculator cashbackforexpipcalculator know what we should do in the current market, so why bother to predict what will happen tomorrow? Therefore, what we need to do is to follow the trend instead of predicting it, we should know how to follow the trend in the current market? Here, we recommend a technical means to track the trend - Bollinger channel Bollinger channel consists of the upper, middle and lower cashback forex, it will be divided into four areas of forexcashbackprofitcalculator fluctuations, where the upper rail is also called the pressure line, the middle rail is also called the price average, the lower rail is also called the support line BOLL channel as a technical indicator to track the trend is very Effective, while the application is very convenient below on the BOLL channel in a variety of situations, and in various cases we should take a brief introduction to the trading strategy: 1. When the price runs in the BOLL between the rail and the upper rail of the region, as long as the price does not fall below the rail, that the market is in the long market, at this time we consider the trading strategy is to buy at the low point, do not consider short 2. When the price runs in the BOLL between the rail and the lower rail area, as long as the price does not break through the rail, that the market is in the short market, at this time our trading strategy is to sell at the high point, do not consider buying 3. When the price runs along the BOLL rail, the market for the unilateral up market, the case is generally explosive market, hold more than one single must hold, as long as the price is not out of the upper rail area on patience Hold 4. When the price along the BOLL lower rail running, the market for the unilateral down market, the situation is generally a set of fast falling market, hold the short single as long as the price is not out of the lower rail, to do is also patiently hold 5. When the price is running in the BOLL rail area, the market performance for oscillating market, the market will oscillate up and down in this area the market for the trend of friends to do the most damaging, there will often be Left and right slapped by the loss phenomenon at this time we take the trading strategy is to wait and see short positions, avoid this section of the oscillating market 6.BOLL channel shrinkage state when the price after a period of time up and down, will be in a range into the oscillation rest, oscillating price area will be smaller and smaller, BOLL channel performance for the upper, middle and lower three orbit shrinkage this state for the big market before the harbinger at this time We take the trading strategy is short position wait and see rest 7.BOLL channel after the sudden expansion of the state when the market in the BOLL channel shrinkage state after a period of oscillation finishing, BOLL channel will suddenly expand, which means a set of explosive market has come, from then on the market will enter the unilateral market in this case we can actively adjust their positions, in line with the market to open positions 8. BOLL channel false breakthrough market when the BOLL channel after the drawdown in a set of big market before the arrival of the market, there will often be a false breakthrough market, which is the main force in the force before the creation of a trap, that is, the textbook often said short trap or long trap we should be alert to the emergence of the situation, the best way is through our position control to eliminate the risk when we find a trap, we still have Enough money and time to adjust our positions!  The above is the application of BOLL channel technical analysis of the various situations that arise as a trend tracking indicator, we choose the BOLL channel period should be a unit of weeks, when prices run unilateral, in order to avoid large pullbacks bring us unnecessary losses, after profitable we take the daily BOLL channel as the basis for the exit so operation, we can grasp a set of large market, but also can timely profit!  Bollinger Bands is based on the principle of standard deviation in statistics designed out of a relatively practical technical indicators reference Bollinger Bands for buying and selling, not only to indicate support, pressure levels, showing overbought, oversold areas, and then indicate the running trend, but also to effectively avoid the usual technical traps of the main force - induced more or induced short, the winning rate of operation is much higher than KDJ, RSI and even MACD and other technical means, especially for In the swing operation clever use of Bollinger Bands trading will make it possible to avoid the trap of the dealer using some common technical indicators to lure more or lure short, because the dealer wants to do something in the Bollinger Bands line, it is almost impossible Composition Generally speaking, the Bollinger Bands line is composed of the upper, middle and lower three tracks, but if the switch parameter is set to 1, the graph will be four lines where the upper and lower tracks are located in the outermost part of the channel, respectively, the pressure line of the trend. The middle one, the middle rail, is the average price line. In most cases, prices always run in a band consisting of the upper and lower rails, and the position of the rails is automatically adjusted with the change in price. Bollinger Bands are also based on the position of the price in the Bollinger Bands to assess the strength of the trend when the price line is located above the middle rail of the Bollinger Bands, the trend is strong, below the middle rail of the Bollinger Bands, the trend is bearish Bollinger Bands are the two extreme upper and lower rails, indicating extreme strength and weakness 1, when the stock price crosses the upper pressure line, a sell signal; 2, when the stock price crosses the lower support line, a buy signal; 3, when the stock price 3, when the stock price crosses the middle boundary from below, it is a signal to increase; 4, when the stock price crosses the middle boundary from above and below, it is a signal to sell.  The main theoretical principles of Bollinger Bands are the following five: 1, when the price crosses the Down line, it can be considered a buy signal 2, when the price crosses the middle line, it is possible to accelerate upward, it is a signal to buy positions 3, the price fluctuates between the middle line and the Up line is a long market, you can hold more or increase the code 4, the price runs between the middle line and the Up line for a long time, from up to Down below the middle line for the sell signal 5, the price in the middle line and Down line downward fluctuations between the run for the short market, can hold short or add throw Tips In practice, investors also need to master some operational skills: 1, when the price is always along the Bollinger Bend steadily upward, the strong characteristics are particularly obvious, it may be worthwhile to draw back in the rail as a low-absorbing buy point, and the rail as an important stop-loss line, with the 4, 9, 18-day SMA system as an important stop-loss line, with the 4, 9, 18-day SMA system as an important stop-loss line. 9, 18-day SMA system as a reference 2, if the price breaks the upper Bollinger 3 days or punch out the upper rail too much, while transactions, positions can not be continuously enlarged, be wary of the risk of pullback confirmation on the contrary, when the price falls out of the lower Bollinger rail, the empty exchange of hands more active, accompanied by transactions, positions continue to enlarge, the price is always hovering, it is likely to form a phase bottom Experience 2 days rule: if the middle Bollinger rail by a long After a significant decline to flat, or up in the pullback to flat, there is an upward inflection point, and the price is also stable in the 2 days above the rail, you can consider buying more single intervention 10% principle: If the price is running above the rail, the Bollinger opening gradually narrowed, that is, the upper rail, rail and lower rail gradually close, when the upper and lower rail value difference close to 10% of the time (daily), for the best time to buy at this time if transactions, positions can obviously Amplify, the price breakthrough signal is more clear Bollinger narrowing is the market to start the signal, and the opening is again enlarged is the best time to add code