During the trading process, we should follow the trend. So how exactly can we judge the trend direction? Among them, judging the trend based on the BOLL (Bollinger) indicator's upper, middle, and lower bands is relatively accurate!
1. When the upper, middle, and lower bands of the Bollinger line are all running upwards, the market's strong characteristics are very obvious, and it will continue to rise in the short term. At this point, we should firmly hold onto our assets and wait for the price to rise. If the price fluctuates between the middle band and the upper band, it is considered a bullish market.
2. When the upper, middle, and lower bands of the Bollinger line are all running downwards, the market's weak characteristics are very obvious, and it will continue to fall in the short term. At this point, we should firmly observe the situation. If the price fluctuates downwards between the middle band and the lower band, it is considered a bearish market.
3. When the upper band of the Bollinger line is running downwards while the middle and lower bands are still running upwards, the market is in a consolidation phase. If the market is in a long-term uptrend, then it is a strong consolidation during an upward trend. At this point, we can hold onto our assets and wait for a rise or increase our positions on dips.
4. When the upper, middle, and lower bands of the Bollinger line are almost simultaneously running horizontally, it indicates that the coin price is in a sideways oscillation state. At this point, we can use a Martingale strategy to engage in high-selling and low-buying actions within the range.