Data:2009-12-12 2:34
Category: Money tips Release Date: 2006-01-05
KDJ indicator is overbought oversold indicators, Bollinger Bands are supported by the pressure-type indicators. Combine the advantages of both: You can make more precise KDJ indicator signal at the same time, due to the price on K-line index system of the Bollinger Bands indicator, often reflects the price trends of the mid-run, so take advantage of this two indicators to determine the short-term fluctuations in price in the end, or have a certain role in the medium-term volatility, especially for the price in the end to determine the short-term peak (bottom), or into the medium-term up (down), with fairly good results.
Bollinger Bands on the rail pressure of the role of the rail and lower rails are supported (pressure) effect, so when the price dropped to Brin rail line or the downside, you can ignore the signals from KDJ indicator to take action . Of course, if KDJ indicator has reached low, then the short-term trends should be regarded as mutual authentication with the medium-term trend of the results of the operation to take a more active strategy.
But to note is that when the price dropped to Brin line the tracks, even if there are support and stabilization, KDJ indicators also been rising, the trend to shift the signal has been issued, so most can only grab a rebound. When KDJ indicator onto 80 high, and take action to sell the more sound, because when the share price fell below Bollinger Bands Bollinger Bands in the track will lead to openings narrow, this time to repair for at least indicators of the need for a longer period consolidation, so that in terms of guarding against downside risks, or from considering the opportunity cost of holding terms are not appropriate to continue to hold.
Finally, summarize the integrated use of indicators and Bollinger Bands indicator KDJ principle: namely, Bollinger Bands based on the price movements to determine the center line in order to KDJ indicator, giving the short-term price trend judgments, KDJ indicator trading signals issued by the need to use Bollinger Bands to verify which, if both of which are given the same instruction, then the sale of accuracy is higher.