How are the upper and lower bands of Bollinger Bands calculated

Calculation formula: Take the daily Bollinger Bands indicator as an example (n general=20):

Middle band = moving flat for n days**.

Upper Band (Up Line) = Middle Band + Two Standard Deviations (2SD) Lower Band (Down Line) = Middle Band - Two Standard Deviations (2SD) Among all the indicator calculations, the calculation method of the Boll indicator is one of the most complex, which introduces the concept of standard deviation in statistics, which involves the calculation of the middle band (MB), upper band (UP) and lower band (DN).

In addition, as with the calculation of other indicators, due to the different calculation periods, BOLL indicators also include daily BOLL indicators, weekly BOLL indicators, monthly BOLL indicators, annual BOLL indicators, and minute BOLL indicators. It is often used to determine the daily and weekly Boll indicators. Although they are calculated differently, the basic calculation method is the same.

The Bollinger Bands (BOLL) indicator is calculated by calculating the "standard deviation" of the ** price, and then finding the "trust interval" of **. The indicator draws three lines on the chart, of which the upper and lower lines can be seen as the upper and lower lines of the price, respectively, and between the two lines there is a price parity, and the parameters of the Bollinger Bands indicator should be set to 20. In general, the price runs in a channel formed by the upper and lower lines.

The Bollinger Bands BOLL (20) is composed of three lines, and the middle line is generally the 20th ** (monthly), which can also be modified to other numbers. The upper and lower lines are the upper line and the lower line, respectively, and the algorithm is to calculate the average standard difference between the closing price of the past 20 days, and then multiply it by 2 to get 2 times the standard deviation. So the online is 20 days flat**.

What do the upper Bollinger Bands up, middle and lower bands mean down?

Boll Bands, also called Bollinger Bands. Consists of three lines. The upper band is called UpperB (abbreviated as UB), the lower band is called LowB (referred to as LB), and the middle band is called the direction of trend (that is, up and down) in addition to the meaning of pressure, support, strength and weakness mentioned above.

The middle band of the Bollinger Bands continues to rise, which is a bullish trend. The middle track continues to fall, which is a downward trend. When the middle track starts to flatten, it is often about to change the trend.

When the opening of the Bollinger Bands shrinks to its narrowest level, it is a sign that a change is about to occur. In general, the stock price highlights the upper rail as the selling point, the lower rail as the buying point, the upward breakthrough through the middle rail is the position increase point, and the fall below the middle track is the position reduction or exit point.

The role of the middle track of the Zhrlinger Band, which I roughly summarize, is several:

1. Determine the medium-term trend. General Bollinger Bands middle band **, indicating a bullish trend; The middle band of the Bollinger Bands is parallel, indicating a consolidation situation; The Bollinger Bands are on the downward side of the middle band, indicating a bearish trend. It's just a simple distinction.

In fact, in practice, the most important thing we should pay attention to is the parallel phase of the middle band of the Bollinger Bands. Because the parallel phase is often a transition, from long to short, or from short to long. Of course, it does not mean that the flat middle band of the Bollinger Bands necessarily means a reversal of the general trend, or it may just be a shift in the gears.

Second, the buying point in **. In general, in an obvious ** trend, when the stock price adjusts to the middle track, especially when it is below the middle track, it is often a better buying point. Let's open the **chart**, you can see, in a relatively long-term **trend, is it below the middle band of the Japanese Bollinger Bands (20th**), which are all relative lows?

If some people feel that the buying point of the middle band of the Bollinger band is not very easy to grasp under the trend, it is recommended that you can use a smaller period, including 30-minute Bollinger Bands and 60-minute Bollinger Bands, to find a buying point at the lower band. Generally, on the way, the stock price reaches the middle of the Bollinger Bands, that is, the lower band of the 30-minute or 60-minute Bollinger Bands.

3. The selling point in **. **In the process, the stock price usually runs below the middle track. When you reach the middle track, you need to be very careful.

If there is stagflation, it means that ** may be in place and needs to be sold. Similarly, you can use smaller Bollinger Bands to find a more confident selling point.

Generally speaking, the buying and selling points at the middle band of the Bollinger Bands are not as safe as the buying and selling points at the lower and upper bands. Because, when the stock price reaches the middle track, sometimes it will face the possibility of a medium-term trend reversal. For example, in the trend, if the stock price adjusts to the middle of the upward Bollinger Bands, it may also fall below the middle band, forcing the middle band to flatten.

In the same way, in the trend, the stock price will also break through the middle track in large quantities, thus flattening the middle track.

Summary. In **, both the upper and lower bands are a type of Bollinger Band. **The Bollinger Bands (Boll) indicator is calculated by calculating the "standard deviation" of the stock price, and then finding the "confidence zone" of the stock price.

The indicator draws three lines on the chart, of which the upper and lower bands can be seen as the upper and lower bands of the stock price, respectively. In general, the stock price runs in a channel formed by the upper and lower lines. This indicator is mainly used to sell high and buy low.

Open a **** chart, enter boll will appear Bollinger bands, do not need to draw their own, Bollinger bands is a very simple and practical technical indicator, boll upper, middle and lower 3 lines are called upper rail, middle rail, lower rail, boll indicator in the upper, middle and lower band calculation formula is as follows:

Upper band = middle band + 2 * standard deviation value.

Middle Rail = 20-Day Moving Level**.

Lower band = middle band - 2 * standard deviation value.

What should I look at "Bollinger Bands, Upper Band, Middle Band, Lower Band" and what are the Bollinger Bands for?

Hello 1Typically, the direction of the middle line of the Bollinger Bands may represent the general trend of the forex market. 2.

If the stock price constantly touches the upper band and often breaks through the upper band upwards, it means that the stock price is in an uptrend, and the same is true for the downtrend. 3.When the Bollinger Bands are in a state of accelerated tightening, it signals a possible reversal in the market.

At this time, it is recommended that investors combine several different technical indicators to analyze and judge at the same time, and if other indicators do not have a more obvious sell signal, it may only indicate a continuous signal.

In **, both the upper and lower bands are a type of Bollinger Band. **The Bollinger Bands (Boll) indicator is calculated by calculating the "standard deviation" of the stock price, and then finding the "confidence zone" of the stock price. The indicator draws three lines on the chart, of which the upper and lower bands can be seen as the upper and lower bands of the stock price, respectively.

In general, the stock price runs in a channel formed by the upper and lower lines. This indicator is mainly used to sell high and buy low. Open a **** chart, enter boll will appear Bollinger bands, do not need to draw their own, Bollinger bands is a very simple and practical technical indicator, boll upper, middle and lower 3 lines are called upper rail, middle rail, lower rail, boll indicator in the upper, middle and lower band calculation formula is as follows:

Upper Band=Middle Band+2*Standard Deviation Value:Middle Band=20-Day Moving Level**Lower Band=Middle Band-2*Standard Deviation Value.