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Data:2009-12-12 2:34
Bollinger Bands is a "path type indicator", due to both the characteristics of a flexible and conform with the trend, making it become the capital market was one of the indicators commonly used techniques. Bollinger Bands indicator is given an index or stock price fluctuations in the upper rail and lower rail of the range, same time, through a central line to cope with the right to judge the trend. Although the stock price in the "on track" and "lower track" changes in the fluctuation band, but this is band width of fluctuations in stock price volatility but with the size varies. Stock price volatility increased, the fluctuation band will be widened; stock sideways, the fluctuation band remain unchanged or narrowed. In other words, given the volatility of Bollinger Bands with a range, with the constant changes in stock prices adjust accordingly.
In the application of the indicators, with a focus on the changes and fluctuations in index or stock price fluctuations of the belt through. Generally speaking, when Brin was level with fluctuations in the line moving, they can be regarded as the current trend to run sideways mainly belong to "normal range." In this case, when the stock price up through the "on track", it will form a short-term correction, can be seen as a short-term sell signal; shares down through the "next track", it will form a short-term rebound at this time was short-term buying opportunity. But the stock or stock prices following a period of sideways running, the volatility of Bollinger Bands with a narrow range of signs, namely, "on track" and "lower track" move closer to each other, then said it would be started to change disks. At this point if the stock straight through the "on track", said the stock would move up the direction of operation; and when the stock straight through the "next track", said the stock would move down direction.
In fact, Bollinger Bands operational guidance for the band stronger. It is under normal conditions through the rails up and down the specified pressure range of support functions, and across the region, pointed out that the stock price is in overbought oversold state. The same time, the trend is running, its more obvious role. On the one hand, the formation of a breakthrough before the stock or stock, investors can observe the fluctuations with whether there is an early sign of narrowing ready. On the other hand, the trend coming to an end, investors can observe the stock price fluctuations brought on the center line through, combined with changes in volatility with a phased operation to seize the opportunity to advance. Especially in the boom or a slump of late, the share price is often out of the upper Bollinger Bands, or under the rail track. At this point, if determined to escape the high toss the top or bottom suction approach, short-term gains will be very considerable.
But for experienced volatility with a sustained contraction has just been a breakthrough in morphology of stocks in the stock price movements when the initial application of Bollinger Bands try to avoid short-term operation. In the early rising, due at the beginning of a breakthrough in the first few trading days the general trend of stock prices strong, the track hit the upper Bollinger Bands, it often is based on a strong finishing sideways to absorb the pressure of technology, or they close to the Boolean line orbit, without correction, this time around if sold on the track after, but not necessarily a better price can no longer be covering, at this time is easy to miss the center line revenue opportunities. In the beginning of the downtrend Likewise, the share price under short-term track after experiencing a rapid fall to below may be changed to slow down or sideways amendment, this time approaching rebound is likely to fall into the plight of quilt. However, the above two cases, the SAR Bollinger Bands with stop-loss targets used in conjunction in order to achieve each other, increasing the odds of the investment effect.
