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Data:2009-12-12 2:34
Bollinger Bands indicator is the closing price by calculating the standard deviation, to obtain reliable operation of the price fluctuations in the range of indicators.
This indicator shows the use of wave brought a variety of stock price, when the price fluctuation is very small, in the consolidation, the waves with a narrow, intense at this time indicates that price fluctuations may occur immediately; when the price of the high points and low Under the rail crossing on the track or immediately after the back-wave band, generally have short-term correction or short-term rebound occurs. Another wave of mobile for finding the target value with a great help, if the band area moving along the horizontal direction, while the shares on behalf of a continuous rail crossing on the stock remains broadly unchanged from the strong side the scope of the average line, suggesting the top of their will to run.
Bollinger Bands use of indicators in principle be summarized as the following few:
1, Brin line, middle and lower wave band formed by rail is not a constant value, the scope of upper and lower limits are not limited to, the price in the normal state of operation.
2, wave onto the next track shows that the safe operation of the highest prices and lowest places, MB line, UP line, DOWN-line prices may be on the supporting role, MB Line and the UP line and sometimes will put pressure on price movements.
3, when the prices were above the MB run-time, is a strong trend, when prices were below the MB run-time, is a weak trend.
4, when prices break through UP or DOWN lane lines will be subject to pressure or support to change the direction of the current price and gradually move closer to the MB line.
5, when the wave zone when opening gradually narrowed, indicating prices will enter a period of time in the future consolidation phase, when the waves are amplified, with openings, indicating that prices will appear in the next period of time more intense fluctuation, this time based on wave with opening up and down direction, to determine the future price fluctuations in the major trend is up or down.
6, when the price and Brin lines at the same time moving along the horizontal direction, if the price is in MB or more runs a greater chance of rising market outlook appears; the other hand when prices are in MB the following run-time, afternoon greater risk of deflation.
7, although not stress indicator Bollinger Bands indicator morphological features, but still stressed that deviate from the phenomenon of divergence indicator and the price trend, prices tend to move in the next period of time to run the current in the opposite direction.