During the trading process, we should follow the trend. So how do we determine the trend direction? Among them, it is relatively accurate to judge the trend according to the BOLL (Bollinger Bands) indicator's upper, middle, and lower bands!
1. When the upper, middle, and lower bands of the Bollinger Bands are all running upwards, it indicates that the market is very strong, and it will continue to rise in the short term. At this time, we should firmly hold onto our assets and wait for the price to rise. Fluctuations between the middle band and the upper band are considered a bullish market.
2. When the upper, middle, and lower bands of the Bollinger Bands are all running downwards, it indicates that the market is very weak, and it will continue to fall in the short term. At this time, we should firmly wait and observe. Fluctuations between the middle band and the lower band downwards are considered a bearish market.
3. When the upper band of the Bollinger Bands is running downwards while the middle band and lower band are still running upwards, it indicates that the market is in a consolidation phase. If the market is in a long-term uptrend, then the market is undergoing a strong consolidation during the upward trend. At this time, we can hold onto our assets and wait for a rise or increase our position when the price is low.
4. When the upper, middle, and lower bands of the Bollinger Bands are almost all running horizontally, it indicates that the price is in a sideways fluctuation state. At this time, we can use a Martingale strategy to make high sells and low buys within the range.