When trading, you have to follow the trend, so how do you determine the trend direction? In fact, it is quite reliable to use the upper, middle and lower tracks of the Bollinger indicator (BOLL) to analyze the trend!
Three lines all upward
If the upper, middle and lower tracks of the Bollinger Bands all go up at the same time, it means that the market is particularly strong and will most likely continue to rise in the short term. At this time, hold the currency firmly and wait for it to rise! And if the price fluctuates between the middle and upper tracks, it is a typical bull market.
Three lines all downward
If the three lines go down together, it means that the market is very weak and may continue to fall in the short term. In this case, it is best not to act rashly and wait and see. If the price goes down between the middle and lower tracks, it is a bear market, so be cautious.
Upper track bends down, middle and lower tracks go up
If the upper track begins to bend down, but the middle and lower tracks are still going up, it means that the market is in consolidation. If it was a long-term upward trend before, it is likely to be a strong consolidation in the rise. At this time, you can continue to hold the currency, or even increase your position on dips.
Three lines moving horizontally
If the three lines of the Bollinger Bands move horizontally, it means that the market is fluctuating sideways. At this time, you can use range operation methods, such as Martingale strategy, buy high and sell low, and flexibly adjust positions.