Ye Wenxi: Cleverly Using Bollinger Bands to Seize Opportunities

The Bollinger Line uses statistical principles to calculate its confidence interval using standard deviation. Due to its flexibility and trend adaptability,Make it one of the commonly used technical indicators in the current capital market. Each variety of spot stocks can be regarded as a long-term stock, and the method of looking at stocks is always the same. Below, we will replace spot stocks with stock prices。Follow Ye Wenxi's official account and guide WeChatywx5252.

Buying and selling principle


　1The Bollinger Bands use wave bands to display their safe high and low price points. The Bollinger Line indicator provides an index or stock price fluctuationUPPERandLOWERInterval of,Simultaneously passing through a central lineMIDTo assist in judging trends. Although the stock price isUPPERandLOWERWithin the range of fluctuations within the band,But the width of this fluctuation band varies with the magnitude of stock price fluctuations. When the fluctuation of stock price increases,The fluctuation band will widen; During the sideways consolidation of stock prices,The fluctuation band remains unchanged or narrows. That is to say,The range of the volatility band given by the Bollinger Line is constantly adjusted with changes in stock prices. When applying this indicator,The focus is on the fluctuations in the volatility band and the crossing of the index or stock price over the volatility band.generally speaking,When the fluctuation band of the Bollinger Line moves horizontally,It can be seen that the current trend is mainly sideways. In this situation,When the stock price crosses upwards"UPPER"Hour,Will form a short-term rollback,It can be seen as a short-term selling signal; Stock price downward crossing"LOWER"Hour,Will form a short-term rebound,This is a short-term buying opportunity.


　　IIWhen variability decreases,And when the band narrows,Intense price fluctuations may occur immediately. This indicates that a disk change is about to begin.At this point, if the stock price continues to cross"UPPER",Indicates that the stock price will move in an upward direction; And when the stock price continues to cross"LOWER",Indicates that the stock price will move in a downward direction.


　　IIIWhen crossing the boundary of the wave zone at high and low points,Immediately return to the wave zone,There will be a rollback. actually,The Bollinger Bands provide strong guidance for band operations. Simultaneously during trend operation,Its function is also quite obvious. one side,staystock market indexBefore the stock price breaks through,Investors can prepare in advance by observing whether the volatility band shows signs of narrowing;At the end of the trend,Investors can observe the impact of stock prices on the median line of the volatility bandMIDTraversing through,And combine the changes in the fluctuation band to seize the opportunities for phased operations in advance.


　 IVAfter the wave band begins to move,Enter another band in this way,This is quite helpful for identifying the target value.For stocks that have just made a breakthrough in their form after experiencing persistent contraction in the volatility band,When applying the Bollinger Line in the early stages of stock price fluctuations, short-term operations should be avoided as much as possible.


　　Although the Bollinger Bands have many uses,But there are also many shortcomings,Investors can use other indicators in conjunction with their operations,To complement each other's strengths and weaknesses,To achieve one's investment goals.


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