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BOLL
2014-12-31
Bollinger Bands by the support line (LOWER), the resistance line (UPER) and neutral (MID) composed of three
The basic application methods Bollinger Band
1. The price upward correction will be formed through the resistance line when, for the time to sell.
2. The price will be formed when the rebound down through the support line for buying opportunity.
3. When prices rise along the resistance line, although not a breakthrough but also began to turn back time to sell.
4. When the price dropped along the support line, although not a breakthrough but also buying back the start time.
5. When the bandwidth is very narrow Bollinger band is about to choose to break the market direction signal. When using this method caution, because then the price will always be a false break, investors have to wait for a clear direction to break, and then intervene with Bollinger bandwidth amplification. (At the same time, many investors will look at the analysis of narrow bandwidth volume, when the bandwidth is increased volume; when narrow band represents the volume decrease)