This weekend, let’s learn the BOLL indicator with Brother Sao!
Many friends have recently begun to study various indicators, which is definitely a good thing!
But here's a little advice for you:
1. Just choose one or two indicators that you are interested in. Don’t pursue high-end ones. The simplest way is the best. Being proficient in one or two indicators can greatly improve your winning rate.
2. If you don’t like self-study, you can find a recognized KOL to absorb his ideas, but don’t copy his strategies, because the text you read is always only part of his ideas, not all of them.
This advice is crucial, because once you start to settle down, your preconceptions are particularly important and may guide your lifelong trading career, so you must choose what you are interested in so that you can stick to it, and you must choose a KOL you have been following for a long time and whose trading system is recognized! Those who simply shout orders here can be directly passed, because apart from the points, they can't instill any trading system in you, and you will never learn to "fish" with this kind of people!
Today's BOLL, Brother Sao will take you through the core elements in the simplest way in three minutes:
What is BOLL:
BOLL (Bolinger Bands) is a path-type indicator that draws three lines on the graph. The upper and lower lines can be seen as the price pressure line and support line respectively, and the middle line is the price average line.
The price fluctuates within the range of the upper and lower limits. When the price increases or decreases, the band area will become wider, and when the price increases or decreases, the band area will become narrower. When the price breaks through the upper limit, it represents overbought, and when the price falls below the lower limit, it represents oversold.
Idea 1:
When the band of the Bollinger Bands moves horizontally, it can be considered to be in the "normal range". At this time, when the price breaks through the "upper limit" upward, it will form a short-term retracement, which is a short-term selling signal; when the price falls below the "lower limit", it will form a short-term rebound, which is a short-term buying opportunity.
Note: Breaking through the upper and lower limits is only for short-term reference. If there are continuous breakthroughs and continuous breaks, it will open up the space for rising and falling. Pay attention to the difference here and pay attention to the long and short trend reversal signals at all times!
Idea 2:
When the band moves to the upper right and lower right, it is out of the normal state. When the price breaks through the "upper limit" continuously, it suggests that the price will move in the upward direction; when the price falls below the "lower limit" continuously, it suggests that the price will move in the downward direction.
The above summary comes from the exclusive summary of "Leading the Trend Will Make You Rich", if you like it, please like, collect and follow it!