Good tools and indicators for Cowhide City and Monkey City: BOLL

(repost) Bollinger bands Boll usage     Bollinger Bands are one of the most frequently used technical indicators in the stock market, reflecting the volatility of stock prices. In the mountain version of the software indicator Chart of the Bollinger bands are composed of three, the upper white Line (UP) is the resistance line, the lower Yellow Line (down) is the support line, the middle of the Pink Line (MB) is the average line . When the stock price consolidates, the resistance line and the support line contract, called the shut-off; The Resistance and support lines are opened, called openings, to prove that the stock price is about to produce large fluctuations.
　　The general rule of Bollinger bands is that when the stock price breaks down the support line (the Yellow Linedown) The buy point appears, while the upward breakdown resistance line (white line up) sells. The average line (the Pink line MB) is an important support or resistance that tests whether a trend (whether rising or falling or consolidating) continues.
but after a long period of observation by the author, it is found that this law is not applicable in any market situation, but only in the Span style= "color: #ff0000;" > in the trend of consolidation or ascent has a good indication, and in a downtrend, the breakdown of the bottom support line is not a real buy point. In the downtrend, the Yellow Line (down is the was penetrated, the stock price still fell. If you open a position rashly, you will inevitably suffer losses. The author after a long time to conclude that the Bollinger bands in the medium and long term appears to be an excellent trend indicator, when the Bollinger bands are transferred from the closure to the opening, the stock price ends the consolidation , is about to produce sharp fluctuations, and the price of the breakthrough direction, marking the future trend of the direction of movement. Also that is, the stock price breaks up the Resistance line white line (up), it is an upward trend, and vice versa, it will be the downtrend . While The average line Pink Line (MB) the upstream (or downlink) channel consisting of a resistance line (or support line) has a strong indication of the medium-and long-term trend of stock prices. As an example of the above line, stock prices near the average can be regarded as short-term buy points, stock prices near or breakdown resistance line can be judged to be short-term selling point, but for non-short-term operators as long as the average line to grasp the effective support can be judged whether the upward trend is continuous. Conversely, the judgment of the downtrend is the same.

In addition to the above indications, Bollinger bands also have a short-term indicator effect. The author used to observe a long, most effective, but investors remember that only short-term speculation, there must be decisive out of profit.
The rule of application is this: when a stock has a very small volatility over a period of time, it is reflected on the Bollinger bands as a long-term narrowing of the price band, while in a certain trading day the stock price breaks through the resistance line of the Bollinger bands at the close of the larger volume, while the Bollinger bands are obviously converted to openings, At this point investors should be decisive buy (from the day of the K-line chart can be seen clearly), this is because the stock from weak to strong, short-term impulse will not only one day, the short-term must have a new high, so can be decisive intervention .
Step Forest channel is composed of upper, middle and lower rail, it divides the range of price fluctuation into 4 regions, in which the upper rail line is called the pressure line, the middle rail line is called the price average line, and the lower rail line is called the support line. Boll channel as a tracking trend of the technical indicators are very effective, at the same time the application is very convenient. Below is a brief introduction to the various situations appearing in the Boll channel and the trading strategies we should take in various situations:

1. When the price runs in the area between the boll and the upper rail, as long as the price does not fall below the middle rail, indicating that the market is in the bull market, at this time we consider the trading strategy is to buy at low point, do not consider shorting.

2. When the price is running in the area between the boll and the lower rail, as long as the price does not break through the middle rail, indicating that the market is in short market, at this time our trading strategy is to sell at a high point, do not consider buying.

3. When the price is running along the boll, the market is a unilateral rise, the situation is generally an outbreak of the market, holding more than a single must be kept, as long as the price does not deviate from the upper rail area on the patient hold.

4. When the price along the boll down rail operation, the market for a unilateral decline, the situation is generally a rapid decline in the market, holding the empty list as long as the price does not deviate from the lower track, to do is also patient hold.

5. When the price is running in the Boll region, the market is oscillating and the market will oscillate up and down the area. The market for the trend of friends to kill the biggest, often will appear around the loss of the slap. At this point we take the trading strategy is empty position to wait and see, avoid this period of oscillation market.

The indent state of the 6.BOLL channel. When the price after a period of rise and fall, will be in a range of oscillation in the rest, the price of the oscillation of the area will be more and more small, boll channel performance for the upper, middle and lower three orbital necking. This state is the harbinger of a big market. At this point we take the trading strategy is empty position wait and see rest.

The sudden expansion after the 7.BOLL channel is retracted. When the market in the Boll channel necking state after a period of time after the oscillation finishing, boll channel will suddenly expand, which means that an outbreak of the market has come, since then the market will enter the unilateral market. In this case, we can actively adjust their positions, to comply with market positions.

False breakout quotes in the 8.BOLL channel. When the boll channel after the contraction of a large market before the advent, often will appear false breakthrough market, which is the main force before the production of a trap, which is often said in textbooks, "short trap" or "long trap." We should be wary of this situation, the best way is to eliminate the risk through our position control. When we find that it is a trap, we still have enough money and time to adjust our position!

The above is the application of Boll channel technical analysis of the various situations. As a trend tracking indicator, we select the Boll channel cycle should be in weeks, when the price of unilateral operation, in order to avoid the big callback to give us the unnecessary loss, in the lucrative after we take the day Boll channel as the basis for the exit. This operation, we can not only grasp a large market, but also timely take profit!

Determination of the exact buy signal of the bollinger bands

In general, the use of Bollinger bands indicators to buy and sell, the success of the operation is far better than the use of KDJ, RSI or even moving averages to buy and sell. Skillfully use Bollinger bands to buy and sell, can avoid the dealer to use some commonly used technical indicators lure more or trap empty traps, especially trial in the band operation, in the following cases for the more accurate buy signal:

1, if the stock price in the operation above the middle rail, Bollinger bands gradually narrowed, the upper rail, the middle and lower rail gradually approaching, when the upper and lower rail value is close to 10%, the best time to buy. If the volume significantly enlarged at this time, the price of the upward breakout signal more clear.

2, when the stock price after a modest rise in the short-term correction, the stock price in the vicinity of the upper rail block and then back to the bollinger bands, if the continuous 3rd a steady track can be considered intervention.

3, when a stock is always along the Bollinger bands channel between the upper and middle rail steadily upward, with a stake or low suction mainly, because this indicates that the unit is in a strong bullish trend.

4. The stock price falls out of the Bollinger bands or a firm track can be considered for intervention.

"Bollinger Bands" study notes

First, the concept
1, Boll indicator is also called Bollinger Bands indicator, its English full name is "Bolinger bands", is the index of the founder ﹝ John Bollinger ﹞ surname to name, is to judge the trend of stock price movement of a medium and long-term technical analysis tool.

2. The Bollinger bands line is a relatively practical technical index designed according to the standard deviation principle in statistics. Refer to the bollinger bands to buy and sell, not only can indicate the support, pressure levels, display overbought, oversold areas, and then indicate the trend of operation, but also effectively avoid the main conventional technology traps-induced or induced empty, the operation of the winning rate is much higher than KDJ, RSI and even MACD and other technical means, especially suitable for band operation.

3. The principle of boll indicator
The boll indicator is a very simple and practical technical analysis indicator designed by the U.S. stock market analyst John Bollinger based on the standard deviation principle in statistics. Generally speaking, the movement of the stock price is always around a certain value center (such as moving averages, cost lines, etc.) in a certain range of changes, the Bollinger bands indicator is based on the above conditions, the introduction of the "Price channel" concept, it is believed that the width of the share price channel with the fluctuation of the size of the stock price change, and the It will adjust automatically as the stock price changes. Because of its flexibility, intuition and trend, the Boll index has become a popular indicator in the market for investors ' wide application.
Among many technical analysis indexes, the boll index belongs to a special kind of index. The vast majority of technical analysis indicators are constructed through a number of methods, they do not rely on trend analysis and morphological analysis, and boll indicators but the stock price pattern and trend are inextricably linked. The concept of "stock channel" in the boll indicator is the visual representation of the theory of stock price trend. Boll is the use of "share price channel" to display the price of stock prices, when the stock price fluctuation is small, in the consolidation, the price channel will narrow, which may indicate that the stock price fluctuations in a temporary quiet period of time, when the stock price fluctuation beyond the narrow price channel of the upper rail, indicating the price of the unusually fierce upward fluctuation is about to When stock prices fluctuate beyond the narrow channel, it also bodes well for the unusually intense downward fluctuations in share prices.

In the stock market analysis software, the boll indicator consists of four lines, namely the upper rail line, the middle rail line MB, the lower rail line DN and the price line. Where the upper rail line up is the up value line, denoted by a white wire, the middle rail line MB is the number of megabytes of the connection, with a pink line, the lower line DN is the DN value of the line, with yellow lines, the price line is expressed in the United States line, the color is light blue. As with other technical indicators, in actual combat, investors do not need to carry out the calculation of boll indicators, mainly to understand the boll calculation method and process, in order to better grasp the essence of boll indicators, for the use of indicators to lay the foundation.

4. Significance of upper, middle and lower rail lines in Boll index
(1). The moving range of the stock channel formed by the upper, middle and lower rail lines in the boll indicator is uncertain, and the upper and lower limits of the channel change with the fluctuation of the stock price. Under normal circumstances, the stock price should always be in the stock channel operation. if the share price runs out of the stock channel, it means the market is in an extreme state .
(2). In the boll indicator, the upper and lower tracks of the stock price channel are the highest price and the lowest price that shows the safe operation of the stock price. Both the upper rail line, the middle rail line and the lower rail line can support the operation of the stock price, while the upper rail line and the middle rail line sometimes play a role in the pressure of stock price operation.
(3). generally, when the stock price is running above the middle line of the Bollinger bands, the stock price is in a strong trend, and when the stock price runs below the middle line of the Bollinger Band, the stock price is in a weak trend.
(4) Use: The indicator uses a wave band to show its safe high and low prices. The share price moves in the "upper" and "lower" bands
(5) The price between the middle line and the down line downward fluctuations in the run as a short market, can be held empty or added.
When the change is increased, the strip area becomes wider, and when the percentage change is reduced, the strip area becomes narrower.

5. Bollinger bands have four functions:
(1) Bollinger bands can indicate support and pressure position;
(2) Bollinger bands can show overbought, oversold;
(3) Bollinger bands can indicate trends;
(4) Bollinger bands have a channel function.

6. The main theoretical principles of Bollinger bands are the following five articles:
(1) The price from the bottom up through the yellow down line, can be considered as a buy signal.
(2) The price from the bottom up through the middle of the pink line, it is possible to accelerate the upstream, is the signal to buy.
(3) The price between the median pink line and the white up line fluctuations in the operation of the long market, can hold more or overweight.
(4) The price for a long time after the middle pink line and the white Resistance line up line between the run, from the top down below the middle pink line to sell signal.

7. The meaning of the Bollinger bands:
(1) After a number of declines in the stock price, then often converted to a longer narrow-band arrangement, we found that the upper and lower limits of the Bollinger bands space is very small, increasingly narrow, closer. The plate shows the highest price and the lowest price spread is very small, short-term no profit space, often even the fees are not earned, the intraday trading is not active, the volume is scarce, investors should pay close attention to this kind of shrinkage situation, because a round of big market may be brewing, once the volume increases, the price rises, the bollinger bands openings expand, The rising market announces the beginning.
(2) If the Bollinger bands are extremely narrow at the high opening, once the stock price is broken down, the bollinger bands are enlarged and a downtrend will inevitably take place.

    8, Bollinger bands opening meaning:
    (1) When the stock price from low to high after a number of waves rise, the Bollinger bands get stress-line and the bottom of the support line opening reached a great extent, And openings can not continue to zoom in to contraction, this is the sell signal, usually the stock price followed by a sharp fall or adjust the market.
    (2) When the stock price falls sharply after a few waves, the upper and lower bounds of the Bollinger bands cannot continue to enlarge, and the upper Bollinger bands line up and down in advance, until the lower Bollinger bands are subsequently indented from the bottom, a downtrend will end.
     Second, experience:
     stock price after a period of intense volatility, will gradually calm, The multi-empty two aspects of the stock market re-thinking, collation, wrestling, in both sides are in a hesitant mood, the price fluctuations more and more dull, prompting the Bollinger bands of the "Upper limit" and "lower limit" more and more close, more and more narrow, this situation is "calm before the Storm", beware! The stock price is going to wind up and swell.
    1, the techniques and methods used by Bollinger bands within the normal range
     The normal range is usually the stock price running in a certain width of the band. It is characterized by the lack of a sharp jump in stock prices, in a relatively balanced state, at this time the use of Bollinger bands is very simple.
    (1) When the stock price crosses the upper limit pressure line (dynamic upper pressure line, static most get stress-line BOLB1), the selling signal;
    (2) when the stock price crosses the lower limit support line (dynamic lower support line, BOLB4) when the bottom support line is static, buy a signal;
    (3) when the stock price crosses the middle line from the bottom up (static from BOLB4 through the BOLB3), it is an overweight signal;
     (4) When the stock price crosses the middle line from top to bottom (static from BOLB1 through BOLB2), the signal is sold.

2. How to use the Bollinger bands in the unilateral rise
In a strong market, stock prices continue to rise, usually the share price will run between BOLB1 and BOLB2, when the share price rose for a long time, the stock price on the next day to wear BOLB1 and further break BOLB2 drive BOLB1 curve appeared by the rise of the obvious inflection point, this is the signal to sell.

3, in the actual combat, investors also need to master some operating skills:
(1) When the price always along the bollinger bands on the upper track steadily upward, the strong feature is particularly obvious, may wish to take back to the middle rail as a low-suction point, and the medium rail as an important stop-loss line, with the 4, 9, 18th ma system as a reference.
(2) If the price broke Bollinger Upper rail 3 days or rushed out of the upper rail too much, and the deal, the position can not be amplified continuously, you should be wary of the risk of callback confirmation. On the contrary, when the price fell out of the Bollinger bands, the air change hand is more positive, along with the deal, the continuous enlargement of the position, the price is always hovering, it is likely to form a stage of the bottom.

4. Experience
(1) The Law of 2nd: If the medium-and-long-term rail in the forest after a large-scale decline in the flat, or rally after the correction, the upward inflection point, and the price is also stable in the 2nd within the middle rail, you can consider buying more single intervention.
(2) 10% principle: If the price is running above the middle rail, the bollinger bands opening gradually narrow, that is, the upper rail, the middle rail and the lower rail gradually close, when the upper and lower rail value is close to 10% (day line), the best time to buy. At this point, if the deal, the position can be significantly enlarged, the price upward breakthrough signal more clear. The narrowing of the Bollinger bands is the signal to start the market, and the opening is the best time to increase the magnification.

5, Bollinger bands in the weak city application should pay attention to the following points:
(1) The stock price can not be crossed upward through the support line as a buy signal, but to the lowest price of a stock link through the Bollinger bands as a preliminary attention to the unit signal.
(2) After the primary signal, the general price will have a back-pumping action, if the share price is not effectively penetrate the lower rail, and the Bollinger bands support line up the head. This can be initially confirmed as a buy signal.
(3) The final confirmation of the buy signal is mainly to see if the volume can be amplified moderately.
(4) It is important to note that the Bollinger band width is already in the convergent state, which is a key factor in signal recognition.

6, buy the condition of the stock: when a stock price volatility is very small in a period of time, reflected in the bollinger bands, the price amplitude band narrow long-term, and in a certain trading day, the stock price in a large volume of the match with the closing price break the Bollinger bands resistance line, while the Bollinger bands from the close to the opening, the investor should

7, the stock sell conditions:
The stock price easily penetrates the boll track from top to bottom, and then the entire boll three rail lines begin to descend. Prudent investors can be strictly in accordance with the stock price from the bottom up to penetrate the boll medium rail as the basis for the sale, the price impact boll on the short-haul, once the share price falls below the boll, exit.

8. The method of radical investors in Bear market operation
And so the stock price fell close to the next track can be closely watched 5th line direction, once the 5th line, the next day the pagoda line turn red can timely intervene to Bo Short, stop loss for the establishment of a pagoda line multi-flat can be jiancang, turn green clearance out. The radical Operation Essentials is that the stock price must touch the boll near the lower rail, 5th line to go flat pagoda line turn red buy.

9, using Bollinger bands to copy the bottom of the "four not" principle

(1) Bollinger Bands Boll not continuously below the lower track does not shoot. At the same time, it breaks below the Bollinger bands, and the Bollinger limit bb<0 is a good buying opportunity when the bottom divergence is a sign.
(2) Do not see the freezing point. The capital flow indicator MFI is visible as the RSI indicator with volume. A. When mfi<20 on behalf of short-term cooling of funds to the fast-freezing point in the short-range oversold signal B.mfi at about 20 levels, the share price appears lower than the bottom, MFI one bottom higher than the bottom divergence, can be regarded as a more reliable medium-term reversal rise signal. The c.mfi<35 indicator is considered a short-term buy or hold signal when it effectively crosses its average for two consecutive times. (Destroy nothing the bottom of the Chinese stock market appears in the fall!) )
(3) Insufficient time to adjust. William Indicator does not hit the bottom of many times, four hit the bottom of the situation is not shot. At the same time, the market medium-term decline has been large, but also appeared in the middle of the mid-term adjustment in place signs for buy time.
(4) The market does not appear group panic selling climax do not buy. In the selling climax, the stock price in the long-term decline on the basis of a sudden sharp fall, and at the same time, the volume greatly aggravated, small and medium-sized investors were forced to large losses and difficult to overcome panic and slash the position, the volume of the bottom of the sudden expansion of the biggest feature. At this time, the Bears succeed, the heavy hand to break the Bollinger bands is the "lure" oversold opportunity to copy the bottom. And once such a huge number of stocks at the bottom of the attack volume rise, can often catch the medium-term reversal and faster pull up opportunities.

Bollinger bands tips for picking stocks

1) Bollinger bands from the upper limit, the midline, the lower bound to form a band channel, Upper and middle lines between the strong zone, between the midline and the lower limit for the disadvantaged areas, observing the Bollinger bands in the regular position of the stock price will help to reveal the strength of the market.

2) The band channel reveals the range of future stock price fluctuations. The Strip channel is variant, and the width of the strip channel varies and adjusts with the amplitude of the stock price fluctuation.

3) The Bollinger bands have the function of pressure and support. The upper bound of the Bollinger bands is the pressure on the stock price, the lower bound of the Bollinger bands is the support for the stock price, and the median of the Bollinger bands is the sensitive position of the pressure and support conversion. Looking at Bollinger bands can help investors form a low-buy, high-selling investment habit.

4) The opening and opening of Bollinger bands is critical. When the two sides reach a temporary balance, the upper and lower bounds of the Bollinger bands are close, the term is called the Bollinger bands, and once the upper and lower bounds of the Bollinger bands are very close, it often indicates that the stock price will run on the plate. And once the multi-party (empty) forces in the market to a certain extent, the multi-party (empty side) will occupy an absolute advantage, the multi-party (empty side) to pull up the stock price (low), the upper and lower limits of the Bollinger bands will be forcibly separated, the process is manifested as the Bollinger bands in the Ascent (descent) of the In these positions the investor will face a major decision to buy, hold, and sell.

Good tools and indicators for Cowhide City and Monkey City: BOLL