The four functions of Bollinger Bands and their application in foreign exchange trading

forexbrokerrebateprogram 2023/2/26 6:40:04 3Views

forex broker rebate program B forexrebatebests (bollingerbands) in technical analys forexbrokerrebateprogram has an important position, its unique construction ideas in our analysis of currency movements can play a big role and other swing indicators are different, the use of Bollinger Bands in the foreign exchange market is relatively unique below we will learn how to use Bollinger Bands in foreign exchange trading Bollinger Bands have four major functions: 1, Bollinger Bands can indicate the location of support and pressure; 2, Bollinger Bands can show overbought, oversold; 3, Bollinger Bands can indicate the trend; 4, Bollinger Bands have a channel role Bollinger Bands have a variety of functions, the use of very effective and convenient, once mastered, the signal is clear, the use of flexible, loved by professional investors, but also the most commonly used in the international financial markets One of the technical indicators in the normal range, Bollinger Bands use of technology and methods: the normal range is usually the stock autorebateforex runs within a certain width of the band it is characterized by the stock price is not extremely large up and down, in a state of relative balance, when the use of Bollinger Bands method is very simple 1, when the price crosses the upper pressure cashback forex (dynamic upper pressure line, static uppermost pressure line BOLB1), the selling point signal 2, when the price crosses the lower limit support line (dynamic lower limit support line, static lowermost support line BOLB4), buy signal; 3, when the price from the lower up through the middle boundary line (static from BOLB4 through BOLB3), for the plus signal; 4, when the price from the upper down through the middle boundary line (static from BOLB1 through BOLB2), for the sell signal in the unilateral rising market Bollinger Bands use Method: In a strong market, the stock price rises continuously, usually the stock price will run between BOLB1 and BOLB2, when the stock price rises continuously for a longer period of time, the stock price up through BOLB1 the next day and down through BOLB1 and further break BOLB2 drive BOLB1 curve appears from rising to flat obvious inflection point, at this time for the sell signal Bollinger shrinkage significance: 1, after several waves of decline Then often turn into a longer period of narrow finishing, when we find that the upper and lower limits of the Bollinger line space is extremely small narrower and narrower, closer and closer to the highest and lowest price differential shown in the plate is extremely small, short term no profit space, often even the commission can not be earned, the plate trading is not active volume is scarce, investors should Pay close attention to such shrinkage, because a wave of the market may be brewing, once the volume increases, the stock price rises, the Bollinger openings expand, the rising market announced the beginning of 2, such as Bollinger in the high openings extremely narrow, once the stock price breaks down, the Bollinger openings enlarge, a round of downtrend will be inevitable Bollinger openings significance: 1, when the stock price from the low to the high after several waves up, the Bollinger uppermost pressure line and the lowermost support line opening reached a great extent, and the opening can not continue to enlarge the contraction, this is a sell signal, usually followed by a wave of decline or adjustment market 2, when the stock price after several waves of significant decline, Bollinger upper limit and lower limit of the opening can not continue to enlarge, Bollinger upper pressure line in advance from the upper downward retracted, wait until the lower limit of the Bollinger support line subsequently retracted from the lower up, a round of Bollinger Bands Note: 1, the Bollinger Bands parameters must not be set less than 6, the software static value is usually 10; dynamic settings are usually 202, the use of Bollinger Bands to pay attention to determine whether it is in the normal zone or the extraordinary zone in the extraordinary zone can not simply break the upper limit to sell, break the lower limit to buy the principle of 3, move to use the opening to narrow at low levels is easy to capture the bull stock, but at high levels or once the narrowing of the mouth, the stock price downward breakthrough, there is often a large downward space 4, can be used with Bollinger Bands and other indicators effect will be better, such as volume, KDJ indicators, etc. Application in foreign exchange trading 1, do not ignore the opening price 2, buy signal combination. The price constantly touches the upper rail and swing indicator is positive buy signal combination: the price constantly touches the lower rail and swing indicator is negative 3, in general, the Bollinger line in the rail represents the main market trend 4, when the market strong trend formed, the lower rail line of the Bollinger line appears to turn down, the market trend can be temporarily ended 5, when the Bollinger line tighter and tighter, often means that the market is turning personal view to turn the momentum of the comprehensive rsi , kdj judgment upward, or downward when you choose the indicator no obvious sell signal, but the price touches the upper rail of the Bollinger Bands, indicating that this is a continuing signal 6, w bottom identification: If the price of 2 bottoming out, not like the first bottoming out when breaking through the lower rail line, then even if the price of the absolute number of new lows are also considered to be the bottoming out success 7, head and shoulders top identification left shoulder upward attack, the strongest, the price is often beyond the Bollinger band Head up, the price of a new high, and can reach the upper rail, but rarely more than the upper rail right shoulder up, but it is powerless to touch the upper rail line 8, during the price in the uptrend, the price walking on the Bollinger Bands is mainly characterized by: the price constantly touch the upper rail line, but also often break upwards the upper rail line downward trend the same 9, when the market enters the horizontal consolidation state, Bollinger regular narrowing, the average line flattened when the Bollinger Bands mouth The more you close the hour, at this time must look at other indicators comprehensive judgment, pay close attention to the news, after all, the news always plays a role in the market catalyst personal view: the morning hourly chart on the rail for todays resistance, the lower rail for support hourly chart Bollinger line up and down the rail is the basis for many analysts of the exchange rate commentary operation do not believe try! Unlikely to be a sustained state 11, the daily chart, if the price gradually moved up to the upper rail of the Bollinger Bands and walking on the upper rail, the analysis of indicators while echoing the turn strong, then, you can judge the uptrend is about to form a downtrend the same reason 12, the top of the pattern is more complex than the bottom of the pattern, so the analysis of the top to have greater patience
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