Bollinger Line Indicators -BOLLCalculation method of indicators

In all indicator calculations,BOLLThe calculation method of indicators is one of the most complex, which introduces the concept of standard deviation in statistics and involves the median line（MB）The upper track line（UP）Along with the lower track（DN）The calculation. Additionally, as with the calculation of other indicators, due to the different calculation cycles used,BOLLIndicators also include dailyBOLLIndicators, WeeklyBOLLIndicators, monthBOLLIndicators, yearBOLLIndicators and minutesBOLLVarious types of indicators, etc. The day is often used for stock market analysisBOLLIndicators and WeeksBOLLIndicators. Although their calculation values are different, the basic calculation method is the same.


by dayBOLLAs an example of indicator calculation, the calculation method is as follows:

1.dayBOLLCalculation formula for indicators
Medium track=NDaily moving average
Upper track=Middle track+twice the standard deviation
Lower track=Middle track - twice the standard deviation


2.dayBOLLThe calculation process of indicators
（1）CalculateMA：
MA＝NThe sum of daily closing prices ÷N
（2）Calculate standard deviationMD：
MD=square rootNThe day's（C-MA）The sum of the squared values divided byN
（3）CalculateMB、UP、DNLine:
MB＝（N-1）The day'sMA
UP＝MB+2×MD
DN＝MB-2×MD


In transaction analysis software,BOLLThe indicator consists of four lines, namely the upper track lineUPThe Central Railway LineMIDLower track lineDNIn some softwareLOWERIndicating) and price lines. Among them, the upper track lineUPyesUPThe connection of numerical values; Medium track lineMByesMBThe connection of numerical values; Lower track lineDNyesDNThe connection of numerical values; The price line is represented by the US line. Like other technical indicators, in practice, investors do not need to conductBOLLThe calculation of indicators mainly involves understandingBOLLTo gain a deeper understanding of the calculation methods and processes involvedBOLLThe essence of indicators lays the foundation for their application.


writing/Yiteforeign exchangeforum