Tony Cryptocurrency Exchange-Contract Novice Village- Bollinger Band 1

After talking about a few basic support/pressure and trend lines, here is a simple and easy-to-use strategy for everyone, hoping to help everyone.

Bollinger Band Channel Strategy:

Bollinger Band is composed of the concept of moving average and standard deviation. The channel is composed of 3 tracks, namely:

• Channel top rail = channel center line + 2 standard deviations

• Channel middle rail = 20MA moving average

• Channel Bottom Rail = Channel Center Line - 2 Standard Deviations

• Bandwidth (channel space) = (upper rail − lower rail)/middle rail

Bollinger Bands are technical indicators that combine moving averages and statistical standard deviation concepts.

Basic Bollinger Bands:

• The trumpet opens:

 When the upper track of Bollinger Bands goes up and the lower track goes down at the same time, it is usually the starting point of a band. At this time, the part to be observed is the way of contacting the upper track or the lower track. Take the following figure as an example, in the process of falling again , and continue to hit lows along the lower track, the market can continue. At the same time, when the upper, middle and lower tracks are in the same direction, there is no need to rush to close the position, until the lower track has an inflection point, and the position can be closed. vice versa.

• horn close up

 After the Bollinger Band opens its mouth, with the end of the band, the action of closing the horn will be carried out to organize the disk surface. At this time, the price will approach the middle rail, and the price correction will be carried out on a scale, moving towards the middle rail. .

• channel compression

 In the process of channel compression, the price will be arranged sideways, and the price will fluctuate between the upper and lower tracks in a narrow range, so it is called compression. At this time, other indicators are needed to determine the rise or fall of the next band is down.

The whole part of the Bollinger channel is a continuous cycle, trumpet opening -> trumpet closing -> channel compression -> trumpet opening..., which is repeated in this process, and the operation strategy is in the process of this cycle. , we go to find the position to open a position.

A few tips here:

In the long attack type, when the K line starts to attack from the bottom up and crosses the middle rail, you can open a long position. After that, as long as the price remains above the middle rail, it is a continuous long type.

In the short attack type, when the K line attacks from top to bottom and crosses the middle rail, you can open a short position. After that, as long as the price remains below the middle rail, it is a continuous short position.

This is just the basis of the Bollinger orbit strategy. In fact, as long as you master the basic pattern and the opening point, the Bollinger orbit is a very useful type. All the judgments of the opening points can be used for reference. MACD and KD indicators.

Next time, let's talk about the position judgment of Bollinger Bands.