Category: Money tips Release Date: 2006-05-07
Although the KDJ, MACD and other indicators can be low-up as a buy signal or cross through the intersection as a sell high down the signal, but there is a drawback of these indicators, that is, when the stock will lose the role of consolidation or produce cheat line, cause losses to investors. Bollinger Bands indicator of magic lies in the consolidation will give the right tips at the end so that investors avoid buying stocks too early.
Moderator: Investors often encounter such a situation, their stock has been bullish consolidation, do not know when to start, people are not buying nor selling is. Well, there is no single indicator can be a breakthrough in the stock price prompted it to give a timely manner, this issue, we invited senior members of securities investment Mr. Zhang Hongji introduce BOLL indicators.
Tongzhou District of Beijing shareholders Chang: Can you tell us BOLL indicators of the usage?
Zhang Q: In general, the use of Boolean access lines are usually judged as a secondary target stock prices, namely, by the share price, the location of the channel at the Breen to assess the strength of the stock movements, when the United States in the rail line is located at Bollinger Bands above, then most of the bull market may be holding or buy, and when the United States in the Boolean line rail line below, then most of the bear market, intervention should be careful. Brin channel two great tracks on the rail and down to express very strong and very weak.
Haidian District, Beijing shareholders Ms. Zhao: how to use BOLL indicators to choose to buy, sell time?
Zhang note: Select the sale of time to observe the Bollinger Bands indicator is mainly the size of the openings, when the opening hours should pay more attention to the gradual change of the. Bollinger Bands indicator because it became smaller and smaller openings on behalf of Change price range became smaller and smaller, long-short two forces converge, the stock will choose the direction of a breakthrough, but the smaller openings, the greater the intensity of a breakthrough price.
So many small openings in the end be considered small, the limit can be introduced here, wide indicators (WIDTH), means that the Bollinger Bands indicator aperture size of the target. Generally speaking, the limit is less than 10 stocks a wide indicators may occur at any time break. Also, to note that the limit of wide-index value of the critical point will be different with the stocks change, so it is best observe the limits of the unit over the past year the trend of indicators to determine the limit of wide-width index value of the critical point.
Chaoyang District, Beijing shareholders Miss Liu: But this time I did not know that stock prices up or down ah?
Zhang mind: to determine the direction of stock prices, while also taking into account several aspects: First, observe the stock price was above the rails in the run or under run, if the orbit above and there is significant volume amplification, this time you can decisive intervention; two months to observe operation of the unit's shares, if previously there have been a small increase in the callback Zhang Sheng-orbit is stabilized in the possibility of another big rise in living large, if it had previously experienced has a huge Zhangsheng should beware of Bollinger Bands is only narrowing down the middle, then there is the possibility of a substantial drop.
