Category: Money tips Release Date: 2007-05-14
BOLL indicators known as Bollinger Bands, it belongs to the path indicator, the stock price movement in the process of trajectory targets. Bollinger Bands in the calculations is the use of a certain period of time the rate of conversion from fluctuations in the value of its parameter values are usually by 20.
1) Bollinger Bands from the ceiling, middle, lower limit of the composition of band channel, as strong between the upper and middle zone between the middle and lower limits for vulnerable areas, observe the Bollinger Bands in the stock location of the regular operation will help to reveal the market strong or weak. Shares of most of the time in between the upper and middle run, said the stock is in a strong district run, the market have taken part in the value of the stock is expected to continue to move up; shares most of the time in between the lower and middle run, said the stock in a weak zone to run, the market value of the lack of participation , stock prices are likely to continue lower.
2) The strip channel reveals the scope of future stock price volatility. The band channel has variability, ribbon channel width with the size of stock price volatility changes and regulation.
3) Bollinger Bands with the pressure and support role. Bollinger Bands constitute the ceiling price pressure Bollinger Bands constitute the lower end of price support, the center line of Bollinger Bands is the pressure and supported the sensitive location of conversion. Bollinger Bands can help investors to see the formation of group-buying auction, sell into rallies investment habits.
4) Breen line shut and mouth opening is critical. When the long-short the two sides reached a temporary equilibrium, Brin line near the upper and lower limits, the term referred to as Bollinger Bands shut up, once the upper and lower Bollinger Bands by very close, often indicate the operation of stock will turn plate. Once on the market for multi-party (empty square) power of aggregation to a certain extent, the multi-(blank side) will occupy an absolute advantage, the multi-(blank side) the stock pulled (hit low), the upper and lower Bollinger Bands will be were forcibly separated, the process is expressed as Bollinger Bands on the rise (fall) in the process of Bollinger Bands larger mouth opening. Investors will face in the above position to buy, hold, sell major policy decisions.
