Category: Money Tips Date: 2007-05-17
For the average investor, can grasp the current market is happening in the current market, how do we know that we should be sufficient, and why to predict what would happen tomorrow? Therefore, we need to do is to follow trends rather than predict trends, we should be aware that in the current market, how to "advantage of the opportunity to"? Here, the author combines his many years of practical experience, to recommend a kind of technological means to track trends - Step forest channels.
Bohlin channel from the upper, middle and lower rails composition, range of price fluctuations will be divided into four regions, which is also called the line of pressure on the rail line, the average price of rail line known as Line, also known as the next support line trajectory. BOLL channel as technical indicators to track trends, is very effective, while application easy to use. The following passage appears on the BOLL various situations, and in all cases, we should adopt a trading strategy to make a brief introduction:
1. When prices run in the rail and upper BOLL the area between the rails, as long as prices do not fall below the tracks, indicating the market is bullish at this time we consider the trading strategy is to buy bargain-hunting spots, does not consider short .
2. When prices run in BOLL orbit and the next in the area between the rails, as long as prices do not break in the track, indicating the market in the short-Quotes, the time of our trading strategy is to sell rallies point, does not consider buying.
3. When the price on a track running along the BOLL, the market rose for the unilateral market, the situation is generally explosive market, holding over orders must hold, as long as price is not out of the region on track to hold the patient.
4. When the price under the tracks running along the BOLL, the market fell for the unilateral market, the situation is generally wave of rapidly falling market, holding an empty single as long as the price is not out of the next track, need to do is to hold patience.
5. When prices run in the track BOLL areas, the market performance of oscillating market, the market will be up and down oscillation in this region. Quotes for the trend of the friends of mass destruction to do the greatest slap in the face often appears about to suffer a loss of the phenomenon. At this point we have taken short positions of the trading strategy is to wait and see, to avoid oscillation Quotes out this paragraph.
6.BOLL channel necking condition. After a period of time when prices rise and fall, it will enter the oscillations within the framework of a rest, the price of oscillation will become increasingly smaller areas, BOLL channel showed the upper, middle and lower three tracks necking. In this state before the arrival of the Great Quotes omen. At this point we have taken short positions of the trading strategy is to wait and see a break.
7.BOLL channel necking after the sudden expansion. When the Quotes of necking in the BOLL channel state after a period of oscillation, after finishing, BOLL channel will suddenly expand, which means that the explosive wave of Quotes has arrived since then will go after the unilateral Quotes Quotes. In this case, we can actively adjust their positions, comply Quotes Jiancang.
8.BOLL channel of false breaking out. When the BOLL channel through the necking after the wave of big move before the advent of often false-break market, which is the main force in the hair of a pre-trap, that is, textbooks often call a "short-trap" or "bull trap" . We should be wary of the emergence of the situation, the best way is through our position controls to eliminate risk. When we find a trap, we still have enough money and time to adjust our positions!
These are the application of BOLL channel technology emerging from the analysis all circumstances. As a trend tracking indicators, we have chosen BOLL channel cycle should be based on weeks as a unit, when the price of a unilateral operation, in order to avoid large and unnecessary loss of the callback given us, after us in the lucrative Japanese BOLL channel as out basis. This operation, we not only can grasp the big wave of market, while profit in time only!
