Category: Money tips Release Date: 2007-07-13
Bollinger Bands indicator (Boll) is the stock price by calculating the "standard deviation", and then seek stock, "confidence interval." The indicator on the graph to draw three lines, of which the upper and lower two lines can be seen as price pressures were lines and support lines, while in between the two lines there is a price the average line, the parameters of the best indicator Bollinger Bands Set 20. In general, the stock will run in the pressure line and the support line formed by the channel.
Bollinger Bands indicator of general usage in a number of books are about, there is not more talk about it. I mainly want to talk about Bollinger Bands Quotes of the notice of the role of indicators, though, like 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 these indicators are One drawback is that the stock will lose when the role of consolidation or produce deceived lines, cause losses to investors. Usually the process of consolidation in the stock price, investors will most want to know what is the price to when the correction will produce Quotes. Because if too early to buy stocks, but the delay in the stock up, will reduce the utilization of funds, and investors also need to bear the risk of fall in share prices. The Bollinger Bands indicator is just in time to play its magic effect on the end of consolidation given the right prompts, so that investors avoid buying stocks too early.
In fact, the main stock selection indicators for the use of Bollinger Bands Bollinger Bands indicator is to observe the size of openings, openings became smaller and smaller for those who must pay more attention to the stock. 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. Some software do not have this indicator can be calculated by the following: WIDTH = (Boolean upper limit - Brin lower limit) / Brin average price. Generally speaking, the limit is less than 10 stocks a wide indicators may occur at any time break. However, the extreme width of the critical point of index value will change with the different stocks, 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.
Bollinger Bands indicator in selected stocks of smaller openings, the first not to rush to buy because the Bollinger Bands indicator only tells us that these shares at any time break, but did not tell us the direction of price break, if they meet the following conditions the stock more likely to break up: first, the listed company's fundamentals are better, so that when the main force in the lift, in order to attract a large number of disks to follow suit. Secondly, in the K-line chart, the stock is best to stand 250 days, 120 days, 60 days, 30 and 10 day online. Thirdly, depending on the location of the current stock price, the best option at the bottom of the stock price at a relatively, to those at a high level sideways or up and down sideways on the way the stock to be extra cautious. Fourth, indicators W% R (10) and W% R (30) values of greater than 50; indicators of DMI (14) indicators + DI is greater than-DI, ADX, and ADXR have to go up. I think the best time to buy heavy volume in the stock price upward breakthrough, Bollinger Bands indicator openings enlarged.
