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How many stop loss techniques do you know about the Brin Line?

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The Bollinger line indicator is simple, consisting of three lines. However, the three simple lines can clearly represent the current state of the market, whether it is rising or falling, whether it is about to enter shock or the market is about to come, all of which can give us an intuitive feeling. In terms of each specific operation, there are also advantages. When to hold the order, when to stop losing, and when to add positions can be clearly stated. However, Bolin thread is easy to learn but difficult to master, a bit like Tai Chi.
   How many stop loss techniques do you know about the Brin Line?717 / author:Qi Xinyun / PostsID:1360251 ​

Bollinger Line Principle

First, let's briefly introduce the composition of the Bollinger Line. The Bollinger Line is composed of upper, lower, and middle rails, which are simple moving averages and are generally selected20Period, upper and lower tracks passing through the middle track plus or minus2Calculated by multiplying the standard deviation.

The Four States and Their Transitions of the Bollinger Line

The middle track of the Bollinger Line has directions, as well as the upper and lower tracks. Based on the three track directions of the Bollinger Line, four different states can be summarized.

Namely: opening, closing, three tracks in the same direction and walking flat.

We always use trends and fluctuations to describe the current state of the market. If we use the state of the Bollinger Line to describe the current market, closing and leveling can be attributed to the volatile market, and opening and three tracks in the same direction can be attributed to the trend market. The market always revolves around these four states repeatedly. If we can understand the transition laws of these four states, we can predict the next trend of the market. Below is a brief introduction to the transition laws between the four major states.

The market always rises and stops, and when the Bollinger Line opens, the market always needs to revise and organize, which is called closing. How to interpret and form the three tracks in the same direction and leveling?The secret lies in the middle track. After the closing of the Bollinger Line, if the medium rail can provide support or resistance, the market will continue to operate. If the middle track cannot effectively support resistance, then prices will fluctuate around the middle track and continue to close until they level out.

Clarifying the transition and connection relationships between the four major states of the Bollinger Line is beneficial for future market forecasting and specific transactions. Coincidentally, the four tactical guiding principles mentioned in the Jiutian tactics are perfectly reflected in the four states of the Bollinger Line. Friends who are familiar with the tactics of the Jiutian War know four classic phrases. As swift as the wind(Timely stop loss response to fake opening)Xu Rulin(Sell high and buy low during the closing stage)Ran like fire(Hold the license, three tracks in the same direction), motionless as a mountain(Going flat, especially if the range is too narrow, pay attention to effective breakthroughs and wait for effective expansion)。

Opening and stop loss techniques for Bollinger bands

Opening up represents a rapid development of the market. Although investors dislike volatile markets and prefer trend trends, the market often comes abruptly and only enters after confirmation. Due to the large stop loss that does not meet the profit and loss ratio, it is difficult to decide whether to pursue long or short positions. However, after understanding the opening principle of the Bollinger Line, it is only necessary to set it slightly above the middle track, because once the gold price breaks through the middle track during a pullback, it can be confirmed that this wave of large opening is fake, and the earlier you exit, the better.

Closing and Stop Loss Techniques for Bollinger Bands

When the Bollinger Line indicator enters the closing stage, the previous market trend will temporarily come to an end, and the market will enter a reversal stage or a temporary correction. If you have a composite position, it is recommended to close half of the position. If the future market breaks through the medium track again, it is better to transfer all positions. After entering the closing stage of the Bollinger Line, the market generally falls into a period of volatility and consolidation, with little fluctuation in the market. The main focus is on short-term range operations, with stops set above and below the visible highest and lowest points. The closing stage is a great opportunity to operate in the high selling and low buying range.

Three track alignment and stop loss techniques

After closing, if the middle rail can become an effective support resistance, it will appear in a three track co directional state. The three tracks in the same direction is an extremely strong and stable performance of the market, and it is also the most testing time for investors' patience. This situation is also known as the "looting like fire" in the Jiutian strategy, firmly holding onto a profitable position. The middle track becomes a good point for adding positions and also serves as a reference point for increasing profits and stopping losses, until it falls below the middle track of the Bollinger Line.

Leveling and stop loss techniques

When the market falls into a period of consolidation, especially narrow range consolidation, the Bollinger Line flattens out. Going flat is the most attractive but difficult to grasp market trend of the Bollinger Line, as it faces the risk of the Bollinger Line opening at any time. According to the tactical guidance of Jiutian's tactics, it is better to remain motionless and wait and see. However, if this situation occurs in the early trading, some scalp scraping operations can be performed, and the stop loss setting is relatively loose. Formal operations should still patiently wait for the opening direction of the Bollinger line.
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