In the trading process, operating with the trend is the key, but how to accurately judge the trend? In fact, the method of judging the trend based on the upper, middle and lower rails of the BOLL indicator is quite accurate.
First, if the upper track, middle track and lower track of the Bollinger Bands extend upward simultaneously, this demonstrates the strong characteristics of the market and indicates that prices will continue to rise in the short term. In this case, one should decisively hold positions and wait for the price to rise. When the price fluctuates between the middle track and the upper track, this is a long market pattern.
Secondly, if the upper rail, middle rail and lower rail of the Bollinger Bands all fall downwards, this indicates that the weak characteristics of the market are extremely prominent, which means that prices will continue to fall in the short term. At this time, the best strategy is to resolutely maintain a wait-and-see attitude. When the price fluctuates downward between the middle rail and the lower rail, it is a short market situation.
Third, when the upper track of the Bollinger Band moves downward, but the middle track and the lower track are still advancing upward, it means that the market is in a consolidation trend. If the market is originally in a long-term upward trend, then this situation indicates that the market is in a strong consolidation stage in the upward process. At this time, you can either choose to hold the position to wait for the increase, or you can seize the opportunity to increase the position on dips.
Fourth, when the upper rail, middle rail, and lower rail of the Bollinger Bands extend horizontally at almost the same time, it means that the currency price is in a state of sideways fluctuations. In this case, the Martin strategy can be used within a specific range to implement the operation of selling high and buying low to seek profits.