In the trading process, following the trend is crucial, and using the BOLL (Bollinger Bands) indicator's upper, middle, and lower bands to determine the trend direction has high accuracy.
Firstly, when the upper, middle, and lower bands of the Bollinger Bands are all moving upward simultaneously, it highlights the strong characteristics of the market, indicating that prices will continue to rise in the short term.
In this scenario, one should decisively and firmly hold onto digital currencies, waiting for prices to climb. If prices fluctuate between the middle and upper bands, this phase can be defined as a bull market.
Secondly, if the upper, middle, and lower bands of the Bollinger Bands are all moving downward simultaneously, this clearly indicates that the market is exhibiting weak characteristics, and prices are likely to continue to fall in the short term.
At this time, the wisest strategy is to maintain a wait-and-see attitude. When prices fluctuate downward between the middle and lower bands, it can be determined that the market is in a bear market.
Thirdly, if the upper band of the Bollinger Bands is trending downward while the middle and lower bands are still trending upward, this indicates that the market is in a consolidation pattern.
If the market was originally in a long-term upward trend, then this is actually a strong consolidation phase within the rising process. At this time, one can choose to hold onto coins and wait for further price increases, or seize the opportunity to increase positions at lower prices.
Fourthly, when the upper, middle, and lower bands of the Bollinger Bands are almost simultaneously moving horizontally, it indicates that the coin price is in a sideways oscillation state. During this period, one can employ a Martin strategy within the range to conduct high sell and low buy trading operations to seek profits.