Wan Kaizi: On the Importance of the Bollinger Belt

The Bollinger Line indicator, also known asBOLLindex,The full English name is“BolingerBands”,It was done by John Bringer(JohnBolling)Using the principle of quantitative analysis,A designed envelope analysis method,Envelope line set based on standard deviation of closing price,Usually also known as the Bollinger Belt. generally speaking,The movement of oil prices always revolves around a certain value center (such as the moving average, cost line, etc.),The Bollinger Line indicator is based on the above conditions,Introduced the concept of "oil price channel",The width of the oil price channel adjusts with changes in oil prices,Can to some extent reflect the trend of oil prices,Therefore, it is favored by many investors. Pay attention to Gongzhong account for more operational skills; Natural gas spot guidance.
　　
The calculation process of the Bollinger Line indicator is quite complex,The author Wan Kaizi will not elaborate here,Investors can access information fromcrude oilQuote software. Dynamic Bollinger Line3Line composition,Divided intoB1LineMBLine andB4Line.B1The line represents the resistance line of an index (or stock price),B4Line is a support line,The width of the Bollinger Line indicates the range of changes in the index or oil price. When oil prices are consolidating,Triple contraction,Weigh and close the mouth; When oil prices break through upwards or downwards,Three line open,It is called an opening. When oil prices break through upwardsB1Resistance line time,Selling point appears,Downward breakdownB4Linear time,Purchase point appears,When oil prices rise (fall) along the resistance line (support line),Although it did not break through the support line (pressure line),But it has turned around and broken throughMBLinear time,It is also a better selling (buying) point.
　　
The above is only the auxiliary function of the Bollinger Line in short-term investment,But the author, Teacher Wan, believes that,The application of the Bollinger Line indicator is more suitable for medium to long-term crude oil investment,Avoiding the traps of using common technical indicators to lure more or less money by market makers,So as to select the right crude oil,Step on the rhythm. Using the Bollinger Bands to Select the Size and Direction of the Opening of the Bollinger Bands Indicator,When the opening of the Bollinger Line indicator is small,And the crude oil pipeline is gradually narrowing,If oil prices run above or break through the middle track, there are obvious signs of stability,Then intervene decisively,On the contrary, if it falls below the middle track or runs down the track, it is advisable to leave the field. in addition,If there has been a small increase in the early stage and a pullback stabilizes the middle track, there is a high possibility of another large increase,If there has been a significant increase in the early stage, one should be cautious that the narrowing of the Bollinger Bands is only halfway down,There is a possibility of a significant decline afterwards. Of course, in addition to the Bollinger Line indicator meeting the above conditions,If the following conditions are met,The possibility of upward breakthrough is greater: follow the Sina blog "Wan Kaizi Investment and Financial Analyst" to gain more knowledge
　　
　One is that the fundamentals of the market are good.
　　
Secondly, it is best to stand on the250Day120Day60Day30Rihe10On the daily moving average.
　　
The third option is to choose a price where the oil price is relatively low.
　　
The best buying opportunity is to break through the upward trend of oil prices with a larger volume,After the opening of the Bollinger Line indicator has expanded.
　　
　　visible,The Bollinger Line applies Einstein's theory of relativity,Believing that various markets are interactive,Various changes within and between markets are relative, and the level of oil prices is relative,Oil prices above or below the upper trajectory only reflect a relatively high or low oil price,But investors must also refer to other technical indicators comprehensively before making investment judgments,Including price volume coordination, market correlation data, etc.authority:zhetan1314
　　
The above is compiled by Wan Kaizi based on his own actual situation and feedback from clients. It is recommended to refer to it before investing, but caution is necessary. Successful investors do this; Pay attention to Gongzhong account for more operational skills; Natural gas spot guidance.
　　　(Text)/Wan Kaizi