Currently discussing gold: How to analyze market trends through Bollinger Bands

Currently discussing gold: How to analyze market trends through Bollinger Bands

The Bollinger Bands consist of upper, middle, and lower tracks, which divide the range of price fluctuations into4A region, where the upper rail line is also called the pressure line, the middle rail line is also called the price average line, and the lower rail line is also called the support line.BOLLChannels, as a technical indicator for tracking trends, are very effective and easy to apply. Below isBOLLA brief introduction to the various situations that occur in the channel and the trading strategies we should adopt in each situation:

1.When prices run atBOLLWhen in the area between the middle and upper tracks, as long as the price does not fall below the middle track, it indicates that the market is in a bullish trend. At this time, our trading strategy is to buy at the low point and not consider short selling.

2.When prices run atBOLLIn the area between the middle and lower tracks, as long as the price does not break through the middle track, it indicates that the market is in a bearish trend. At this time, our trading strategy is to sell at high points without considering buying.

3.When the price followsBOLLWhen running on the upper track, the market is in a unilateral upward trend, which is generally an explosive trend. Those who hold long orders must hold on and patiently hold as long as the price does not leave the upper track area.

4.When the price followsBOLLWhen running on the downward trend, the market is in a one-sided downward trend, which is usually a rapid downward trend. As long as the price of the short position held does not deviate from the downward trend, patience is also required.

5.When prices run atBOLLWhen in the mid track region, the market shows an oscillating trend, and the market will fluctuate up and down in this region. This market has the greatest impact on trend makers, often resulting in losses from both sides. At this point, our trading strategy is to take a short position and wait, avoiding this period of volatile market conditions.

6.BOLLThe contracted state of the channel. After a period of rising and falling prices, they will enter a range of oscillation and rest, and the oscillating price area will become smaller and smaller,BOLLThe channel is characterized by three track constrictions: upper, middle, and lower. This state is a premonition before the arrival of a major market trend. At this point, our trading strategy is to take a short position and wait to rest.

7.BOLLThe sudden expansion state of the channel after contraction. When the market isBOLLAfter a period of oscillation and consolidation in the channel contraction state,BOLLThe channel will suddenly expand, which means that an explosive market has arrived, and from then on, the market will enter a one-sided trend. In this situation, we can actively adjust our positions and build positions in line with the market trend.

8.BOLLFake breakout market in the channel. whenBOLLAfter the channel passes through a contraction, there is often a false breakthrough market before a major market trend arrives. This is a trap created by the main force before exerting force, which is commonly referred to as the "short trap" or "long trap" in textbooks. We should be alert to the occurrence of this situation, and the best way is to eliminate the risk through our position control. When we discover it's a trap, we still have enough funds and time to adjust our position!

以上是应用BOLLVarious situations that arise in channel technology analysis. As a trend tracking indicator, we have chosenBOLLThe channel cycle should be measured on a weekly basis. When the price runs unilaterally, in order to avoid unnecessary losses caused by a large pullback, we use a daily basis after making substantial profitsBOLLThe channel serves as the basis for elimination. By doing so, we can not only grasp a large market trend, but also take profits in a timely manner!

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