During the trading process, we should follow the trend. So how do we determine the direction of the trend? Among them, judging the trend based on the BOLL (Bollinger Bands) upper, middle, and lower bands is relatively accurate!
1. When the upper, middle, and lower bands of the Bollinger Bands are all moving upwards, it indicates that the market has strong characteristics, and it will continue to rise in the short term. At this time, one should firmly hold onto their assets and wait for the rise, considering the price fluctuating between the middle and upper bands as a bullish market.
2. When the upper, middle, and lower bands of the Bollinger Bands are all moving downwards, it indicates that the market has weak characteristics, and it will continue to decline in the short term. At this time, one should firmly observe the market. When the price fluctuates downwards between the middle and lower bands, it indicates a bearish market.
3. When the upper band of the Bollinger Bands is moving downwards while the middle and lower bands are still moving upwards, it indicates that the market is in a consolidation phase. If the market is in a long-term upward trend, it indicates a strong consolidation during the upward movement. At this time, one can hold onto their assets and wait for the rise or increase their positions during dips.
4. 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 fluctuation state. At this time, one can use the Martingale strategy to perform high selling and low buying actions within the range.