Stock Indicators Bollinger Bands-BOLL Money Tips

Category: Money tips Release Date: 2007-07-28

Bollinger Bands by John Ringer (John Bollinger) invented it. It is by calculating the closing price (typically 20-day moving average and 26-day moving average) and standard deviation, to obtain reliable operation of the price fluctuations in the target range. Typically, when the price touched on Bollinger Bands, it was found to be in overbought condition, when the price hit when under the Bollinger Bands, it was found to be in oversold condition.

Bollinger Bands The basic use is as follows:

1, when prices rebound in the next Bollinger Bands, and the average wear, the Bollinger Bands have become the moving target price;

2, when prices in the Bollinger Bands blocked, and the next wearing averages, Bollinger Bands have become the next price movement goals;

3, when the Bollinger Bands has begun to shrink, the representative may be entering the market to settle down;

4, when the Bollinger Bands began to expand, the representative may produce volatility in the market;

5, when the Bollinger Bands abnormal expansion of the current trends are often coming to an end signal.