How to use Bollinger Bands in Forex? There are three buying tricks for Bollinger Bands

1. When ** runs in the area between the middle and upper rails of the Bollinger Bands, as long as the middle rail is not broken, it means that the market is in the bulls**, and only consider buying on dips, not shorting.

2. When between the middle rail and the lower rail, as long as the middle rail is not broken, it means that it is a short market, and the trading strategy is to sell on the high and do not consider buying.

3. When the market runs along the upper rail of the Bollinger Band, it means that the market is unilateral, and the long single held must be held, as long as the market does not leave the upper rail area, it will be held patiently.

4. When running along the lower rail, it means that the market is currently unilateral, generally a wave of fast ****, and the short orders held are patiently held as long as they do not leave the lower rail area.

5. When running in the middle rail area, it means that the market is currently consolidating, which is the easiest way to lose money for trend traders.

6. The necking state of the Bollinger Bands. **Near the middle rail**, the upper and lower rails are gradually shrinking, which is a sign of the coming**, you should wait and see, waiting for the opportunity.

7. The state of sudden expansion after the channel is retracted. It means that a wave of reporting is coming, and after that, it is likely to go unilaterally, and you can actively adjust your position and follow the trend.

8. When the Bollinger Bands shrink, before a wave of big ** comes, there will often be a false breakthrough**, which is the trap of the main force, and should be vigilant, and can be resolved by adjusting**.

9. The time period of the Bollinger Bands should be based on the weekly line, when the unilateral **, the position has a high profit, in order to prevent the big **, you can refer to the principle of the daily Bollinger Bands.

Forex Noun World Issue 09: Bollinger Bands.

Here's how to do it: The Bollinger Bands are made up of three lines: the upper band (the yellow line of the Boll line), the middle band (the white line of the Boll line), and the lower band (the purple line of the Boll line). 1. Inflection Point Trading Method:

When a round of continuous ** or ** end, once the upper Bollinger Bands (** process) or lower band (during the decline) appear obvious U-turn (as shown in the figure below), at the same time, the KDJ indicator or MACD indicator has one or two dead crosses (** process) or golden cross (during the descent process), sell (** in the process) or sell (in the descent process) on the day of the turn.

Second, the shrinkage trading method:

When the upper and lower bands appear close to or far away from the pattern, we are used to call it opening or closing (as shown below). Generally, the shrinkage (indicated by the gray box in the chart) will accompany the rise and fall of the stock price. In the occurrence of opening and shrinking, the role of the middle rail is very important.

When the middle rail is in a continuous state, such as the continuous upward shrinkage of the middle rail indicates that the stock price is resting or the main force is washing, when the Bollinger Bands shrink flat is the first point, the middle rail appears a pattern reversal such as rising flat, at this time the shrinkage flat is the buy point.

3. Open mouth trading method:

Once there is an opening (as shown in the gray box in the figure), and the middle rail is in a continuous state, if the middle rail continues to rise, it means that the stock price will be closed again, and you can consider adding a position to obtain the short difference; If there is a pattern reversal in the middle of the track, such as going flat and turning downward, the opening of the mouth at this time is the selling point.

Although it is possible to narrow the opening of the boll indicator, it is not all, and these openings need to meet the requirements of six aspects:

1. Company fundamentals.

It is good that when the main force pulls up the stock price, the pressure to sell will not be too great;

2. In**.

On the trend, it is best for the stock price to stand above the long-term and short-term;

3. According to the strategy of buying low and selling high, it is best to choose the ** of the stock price at the relative bottom of the operation;

4. It is best for Bollinger Bands to run upwards, or at least horizontally, which can increase the chance of profit;

5. The best choice is the current hot plate, which can make a quick profit;

6. In the stock price volume upward breakthrough, Bollinger Bands indicator.

The best time is when the opening is widened;

Extended information: 1. Investors who study the ** pattern know that the typical flare pattern changes from contraction to opening is a short-term buying point, so in addition to the typical operation pattern, what kind of opening pattern should BOLL have to be able to buy and sell.

As for the operation, it is a question that investors need to think about, because the daily trend cannot be a typical pattern, and the most common trend is still the basic trend pattern. Therefore, when running the Boll indicator for buying and selling operations, it is necessary to carefully observe the size of the opening of the Bollinger Bands indicator for analysis, especially the opening gradually becoming smaller.

Second, the opening of the Bollinger Bands indicator becomes smaller, which means that the rise and fall of the stock price is gradually becoming smaller, indicating that the strength of the long and short sides is gradually converging, and the stock price will choose a certain direction to break through in the later stage, and the smaller the opening, the greater the strength of the stock price breakthrough. For example, the stock price trend of Orchid Science and Technology Innovation from January to April 2009 changed, in which the stock price was in the Bollinger Bands in January 09.

In the opening, the opening is narrowed, and the stock price is above the middle line, which has a certain support effect, which is an operational opportunity for investors. The same stock price trend after a period of small **, the stock price in March 09, returned to the middle track again, the opening of the Bollinger Bands narrowed again, and the amplitude is larger, indicating that the later breakthrough ** amplitude is also relatively large, at this time investors can open a position.

Usage: Draw three lines on the chart, of which the upper and lower lines can be regarded as the pressure line and support line of the stock price respectively, and between the two lines there is a stock price flat**, the parameters of the Bollinger Bands indicator should be set to 20. In general, the stock price runs in a channel formed by the upper and lower lines.

Basic application: Under normal circumstances, the stock price will run in the Boll channel range, and the strong pressure level when the stock price runs near the upper band, which can generally be used as a selling point; The stock price runs near the lower band as a strong support level, which can generally be used as a buying point.

Essence: 1. Use the statistical principle to find the standard deviation of the stock price and its trust range, so as to determine the fluctuation range and future trend of the stock price.

2. Use the bands to show the safe high and low prices of the stock price.

3. It is composed of the upper, middle and lower bands, and the middle track represents the main trend of the market and plays the role of support and pressure.

The normal range is usually that the stock price runs in a certain width of the band, which is characterized by the fact that the stock price does not rise and fall extremely sharply, and is in a relatively balanced state, and the method of using Bollinger Bands at this time is very simple.

1. When the stock price crosses the upper pressure line (dynamic upper pressure line, static upper pressure line bolb1), the selling point signal;

2. When the stock price crosses the lower support line (dynamic lower limit support line, static lower support line bolb4), buy point signal;

3. When the stock price crosses the middle limit from bottom to top (static from BOLB4 to BOLB3), it is an increase signal;

4. When the stock price crosses the middle line from top to bottom (static from BOLB1 to BOLB2), it is a sell signal.

Extended information: technical indicators Bollinger Bands line of wild potatoes, usually as an auxiliary indicator to judge the stock price trend, that is, through the position of the stock price in the Bollinger Bands to evaluate the strength of the trend, when the line is located in the middle of the Bollinger Bands, it is mostly a bullish market, you can hold shares or, and when the Bollinger Bands are below the middle track, it is mostly a short market, intervention should be careful, the two poles of the Bollinger Bands upper and lower rails, indicating extremely strong and very weak.

When the upper Bollinger Bands are running downwards, while the middle and lower bands are still running upwards, it indicates that the stock price is in a consolidation situation. If the stock price is in a long-term uptrend, it indicates that the stock price is a strong consolidation on the way, and you can choose to intervene on the dip. If the stock price is in a long-term trend, it indicates that the stock price is a weak consolidation on the way, mainly to wait and see and reduce positions.