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Data:2009-12-12 2:34
Bollinger Bands has four major functions:
1, cloth than the line to direct support and pressure position; 2, Bollinger Bands can show overbought, oversold; 3, Bollinger Bands can indicate trends; 4, Bollinger Bands have the channel effect.
Bollinger Bands due to have a variety of functions, easy to use, very effective, once mastered, signal a clear, flexible, professional investors have been loved.
In the normal range, the Bollinger Bands use the techniques and methods �/span>
Normal range is usually run on the exchange rate within a certain band width î–?It is characterized by the exchange rate is not extremely rose fell, in a state of relative balance, this time using the Boolean-line method is very simple.
1, when the exchange rate through the ceiling of the pressure line, selling point signal;
2, when the exchange rate through the lower support line, something for a signal;
3, when the exchange rate from the bottom up through the boundaries for the coded signal;
4, when the exchange rate from the top-down across the boundaries, in order to sell signals.
In the unilateral increase in the use Bollinger Bands Quotes
In a strong market, the exchange rate has increased, often the exchange rate will be run in the ceiling between the pressure lines and the boundaries, when the exchange rate has increased by a longer time limit to put pressure on the exchange rate on the line, the next day under the restrictions put on the pressure line and further break in the boundary. The maximum pressure line appears driven by the increase in the apparent switch to flat inflection point, this time as a sell signal.
Bollinger Bands necking meanings:
1, after the dollar fell after several waves, and then into a longer time often narrow order, when we find that the upper and lower Bollinger Bands minimal space, more and more narrow, more nearly. Shows the highest intraday price and the low exchange rate spread is extremely small, short-term there is no profit margins, are often not even the fees are earned out, not active intraday trading, investors should pay close attention to this necking, because a Great Quotes may be brewing, once the exchange rate rise, Bollinger Bands open to expand, up Quotes declared the beginning.
2, such as Bollinger Bands is extremely narrow openings at a high level, once the exchange rate down to Po Wei, Bollinger Bands openings enlarge, a fall will be inevitable.
Bollinger Bands openings meaning:
1, when the exchange rate from low to high after several waves rise, the Bollinger Bands the best and most under pressure line on the support line open to a great extent, and openings can not continue to enlarge into contraction, this was a sell signal, usually stock prices is followed by a sharp fall or adjust Quotes.
2, when the exchange rate fell sharply after several waves, the upper and lower Bollinger Bands can not continue to enlarge the opening, the maximum pressure line ahead of Bollinger Bands by necking-down, until Bollinger Bands lower support line followed by a bottom-up, when necking , a decline would be closed.
Note the use of Bollinger Bands:
1, Brin-line parameter set not less than six.
2, using the Boolean line is to note that in the normal area or can identify abnormal areas. Area in the very state can not simply sell to break the ceiling, breaking the principle of minimum purchase.
3, using narrow openings. Once at a high level of necking, the exchange rate down to break through, and often there will be more room to fall.
4, can be Bollinger Bands and other indicators used in conjunction î–?would be better, such as KDJ indicators.