From: net Gang
BOLL indicators - Trend trading point of the perfect combination +
Bollinger is a very practical designed according to the principle of statistical standard deviation of technical indicators. It consists of three tracks lines, of which two upper and lower lines, respectively, may be seen as the price and the support line pressure line, between the two lines is an average price, the price of the strip line is generally composed of upper and lower rails interval walk, but with the price changes automatically adjust the position of the track. When the band is narrowed, intense price volatility is likely ensue; if the high and low points across the strip edges, and immediately went back inside the band, then there will generate retreated.
First get to know the following four elements Bollinger:
1, Brin rail line: the representative of the upper limit of price run;
2, Bollinger rail: namely the 20-day average stock price is Bollinger three rail axis;
3, the lower Bollinger rail: On behalf of the lower limit price run;
4, the price of K-line: the Bollinger indicators commonly used American lines marked price.
[Bollinger Bands indicator main trading rules:]
BOLL index within the normal range of use
Normal price range is typically run in a certain range of the strip width, which is characterized by extreme price rose fell not, in a relatively balanced state in this case the use of very simple Bollinger.
1, when the upper limit pressure line through price, selling signal;
2, when the lower limit price crosses the support line, buy signal;
3, when the price from the bottom up through the limit, a signal is overweight;
4, when the price from down through the boundaries, signal to sell
BOLL indicators of significance necking
1, the price fell after a wave number, and then often into a narrow range for a long time, then we find that the upper and lower Bollinger minimal space, more and more narrow, more and more close. Display intraday high and low price difference is very small, there is no short-term profit margins, often even the fees are not earn in intraday trading is not active, trading volume scarce, investors should pay close attention to this situation necking . Because a large market may be brewing on the way, once the volume increases, price rises, Bollinger opening to expand, rising prices declared the beginning.
2, as in the high Bollinger extremely narrow openings, once the price down Powei, Bollinger enlarged opening, one will inevitably decline.
Meaning BOLL Bollinger Bands indicator opening
1, when the price rose after several waves, Bollinger uppermost line pressure from low to high and lowermost support line reaches a maximum opening degree, can not continue to shrink an enlarged when converted, the signal at this time is sold, the price is typically followed It is a sharp decline or the adjustment of prices.
2, when the price fell sharply after several waves, the upper and lower openings Bollinger can not continue to enlarge, Bollinger in advance by the line pressure upper limit downward constriction, the lower limit of support lines until Bollinger followed up by the time of necking , a decline will come to an end.
BOLL combat skills
First, the bell
1, the bell mouth open type
Opening bell shape type often appear early in the short term the stock market soaring.
To have two conditions:
(1) to the stock after a long period of low sideways, the longer the finishing time, the smaller the distance between the upper and lower rails, the future fares of greater amplitude;
It must be clear when a large volume (2) Bollinger starts opening.
2, mouth tight bell mouth
Tight bell mouth shape appear in the stock price fell sharply late. Its formation conditions and recognition criteria more lenient, as long as the share price fell sharply after a long time, turnover withering, the distance between the upper and lower trajectories smaller and smaller when you can identify the initial formation of tight bell mouth. When the bell mouth tight appear, investors can either wait wait, can also be a small amount of positions.
Second, the 5th line and Bollinger trading practices
1, a buy signal: while the stock has been in continuous decline, adjusted in MACD Sicha, the stock price when suddenly from under the rail line near the station 5, followed by the formation of Jin Cha MACD, then this is the best buy the timing.
2, to buy time: no stock when MACD formed Sicha, the stock broke through when on top of the rail line and station of the 5th line, then formed a MACD MACD buy signal, is a good buying opportunity.
3, trading signals: the share price run in the vicinity of the rail line on time, then K line below the rail line, the stock started to adjust downward, beneath the 5th line that is firm and will rebound to rise. Whether the firm must be optimistic about the 5th line. Stand is time to intervene, stop loss below in relation to the.
BOLL support and pressure points of sale:
method one:
FIG stock prices in a slow upward trend shock or in parallel is between the narrow track rail and the upper rail; after some day or below the rail, back to the next track position, then shock days, to break the rail until the rail; post-callback rail firm before repeating again, this time to break up happened on the track the trend probability is very large, which is the more common form of digging.
Method Two:
As shown, the situation is still similar to the operating environment, in shock or slow up, runs between the stock rail and the upper rail, one day acceleration above the upper rail; Brin bellmouth present case call state this occurs when a high probability of rising prices, which is more rapid rise in the classic form.
BOLL volume and price tactics
Specific features:
1, the stock is maintained between the trace and the trace operation, when the price break the trajectory, enlarged opening.
2, with the stock price breakthrough, moderate volume amplification.
3, specifically buying point: investors may choose to buy the next day after the opening line technology leap BOLL complete form, or the next day when buying shares pulled heavy volume.
Actual case studies:
As shown, the stock has been among BOLL rail line and on-orbit operations, there may be a breakthrough in the share price, in line with technical features, can continue to focus investment.
In the February 12, 2017, with the stock exceeded BOLL rail line, BOLL line showing the bell, indicating that the rally is on. Also, you can see the MACD indicator MACD buy signal occurs, investors can choose to buy when the second trading day heavy volume form or leap Bollinger opened on buying, February 13th is a a good buying opportunity.
BOLL four states and stop-loss method
These four states BOLL formed by three lines, namely necking opening, with three tracks and three tracks to go flat. as the picture shows:
We will often use trends and volatility in the stock market is doing to describe the current market trend, if used to describe the state of BOLL, it is the emergence of necking and go flat market take market volatility, when market opening and three tracks in the same direction take the market trend.
We all know that the stock market always fall and rise, after the state changed BOLL Bollinger opening, the market will sort, which is to become necking. Then the other two states? Decided that these two states in the rail Brin, if the track became effective support and resistance levels, the market is easy to continue. But among rail can not play an effective role at that moment, then the price is around this line back and forth shocks, until flat.
These four states met when we should in the end how to stop.
First, stop-loss tips when opening
Opening of the market on behalf of starts, we all like the main upward move in the stock market, but the good market not easy, and this time we go to confirm the need for effective admission. By understanding our Bollinger for the opening of our stop-loss technique is to put a stop position can be a little above the rail, once the stock price fell below the rail callback time, you can see that this wave is false .
Second, the stop-loss tips when necking
When Bollinger entered necking stage, often it means the end of the market, the price and then will enter a high probability reversal or a temporary correction phase. At this point it is necessary to adjust the position, you can lose half of the positions. If below the rail, it would have to clear out all positions. After entering necking stage, the market enters consolidation phase, when operating in short-term operation, the stop position can be below the lowest point.
Third, stop-loss tips when three tracks in the same direction
After necking, when the track became effective support, there will be when the three tracks in the same direction, this state is relatively strong when the market performance, this time in the track can be used as an effective stop position.
Fourth, take the usual stop-loss tips
When entering the shock, if emerge within a narrow range, Bollinger will be the best strategy at this time appears to go flat stage, which is often the most difficult to grasp market time, because this time there are at any risk of opening appears, should hold out, and then decide on the next strategy when the wait for clear direction of the opening.
More specific stop point will change depending on the holding period, but usually daily or 60 minutes to 30 minutes, time period, etc. mainly. You can not be generalized.
BOLL indicators buy low sell high technology warfare
In addition to the stock market rising prices and falling prices, there are lateral market volatility. In fact, most of the time the stock market to the main shock. For this reason, many investors prefer to buy low sell high strategy to deal with stock market volatility.
Here sell high technique and Bollinger Bands binding KDJ index, for reference use.
1, the technical application requirements
When the following conditions are met, investors can buy low sell high technology adoption.
(1) The market is in shock or bottoming phase.
(2) stock price in a sideways or shock bottoming phase. If the stock price is high or the fall in prices, this technique can not be used.
2, the method Trader
The method of the manipulator of the present technology includes the following aspects.
(1) selection of technical analysis tools: 30 minutes and the K-line KDJ indicator.
(2) bargain-hunting opportunity. When the following conditions can be considered inhale chips.
a, in case the stock 30 minutes K line under the rail line Bollinger signs of stabilization rebound, the stock bottom-up or break under the rail line Bollinger Bands, indicating that there is likely to end the downward trend of the share price in the short term.
B, when the share price since Bollinger bounce up trajectories, if KDJ index synchronous cross shape is formed under the gold wire 20, the instructions at this time is to buy more reliable.
(3) high throw timing. When the following conditions can be considered throw chips.
a, the stock 30 minutes K-line in case of Boolean line rail line stagflation signs of correction, or the stock price fell below the Bollinger rail line from top to bottom line, indicating that it is possible to end the rise in the share price in the short term.
B, since the stock downward trajectory correction Boolean line, if the synchronous side is formed KDJ indicator death cross shape in line 80, the instructions at this time is more reliable throw.
(4) Stop setting. After the buy low, sell if the stock price did not follow up the expected direction, but flashed a downtrend, when low (ie, the stock hit its lowest point before Bollinger bounce formed under the rail line) before the stock price fell below the admission form, ie, consider stop operation.