The general research and judgment standards of BOLL indicators mainly focus on:

The meaning of the upper, middle and lower trajectories in the BOLL indicator

  1. The movement range of the exchange rate channel formed by the upper, middle and lower trajectories in the BOLL indicator is uncertain, and the upper and lower limits of the channel change with the fluctuation of the exchange rate. Under normal circumstances, the exchange rate should always run within the exchange rate channel. If the exchange rate runs out of the exchange rate channel, it means that the market is in an extreme state.
  2. In the BOLL indicator, the upper and lower rails of the exchange rate channel are the highest and lowest prices that indicate the safe operation of the exchange rate. The upper rail, middle rail and lower rail can all support the operation of the exchange rate, while the upper rail and the middle rail line sometimes exert pressure on the operation of the exchange rate.
  3. Generally speaking, when the exchange rate runs above the middle rail of the Bollinger Band, it means that the exchange rate is in a strong trend; when the exchange rate runs below the middle rail of the Bollinger Band, it means that the exchange rate is in a weak trend.

The relationship between the upper, middle and lower trajectories in the BOLL indicator

  1. When the upper, middle and lower rails of the Bollinger Bands run upwards at the same time, it shows that the strong characteristics of the exchange rate are very obvious. The exchange rate will continue to rise in the short term. Investors should firmly hold the exchange rate to rise or buy on dips.
  2. When the upper, middle and lower rails of the Bollinger Band run downwards at the same time, it shows that the weak characteristics of the exchange rate are very obvious. The exchange rate will continue to fall in the short term, and investors should firmly wait and see or buy on rallies.
  3. When the upper rail line of the Bollinger Band runs downward, while the middle and lower rail lines are still running upward, it indicates that the exchange rate is in a situation of consolidation. If the exchange rate is in a long-term upward trend, it means that the exchange rate is a strong consolidation on the way up. Investors can wait and see or buy on the short-term bargain; if the exchange rate is in a long-term downward trend, it means that the exchange rate is a weak consolidation on the way down. Investors should focus on holding currencies or waiting for dips.
  4. The upper rail line of the Bollinger Line runs upward, while the possibility of the middle rail line and the lower rail line running downward at the same time is very small, so no judgment will be made here.
  5. When the upper, middle and lower rails of the Bollinger Band are running in the horizontal direction at almost the same time, it depends on the current situation of the exchange rate to judge.
    (1) When the exchange rate has been in a long-term downward trend since the beginning of the exchange rate, the three lines of the Bollinger Bands began to move laterally, indicating that the exchange rate is at the bottom of the construction, and investors can start to build small positions in batches. Once the three lines diverge upwards, buying can be increased.
    (2) When the exchange rate is in a slight upward trend in the early period, the three lines of the Bollinger Bands begin to move laterally, indicating that the exchange rate is in a rising phase of the consolidation market. Investors can hold the exchange rate to rise or short-term bargain-hunting, once the three lines Divergence upwards can be bought in short-term overweight.
    (3) When the exchange rate has just experienced a round of sharp declines, the three lines of the Bollinger Bands began to move laterally, indicating that the exchange rate is a sorting market at the stage of decline. Investors should mainly wait and see the currency and lose weight on rallies. When the three lines diverge downward, they will resolutely clear the market and leave, then go short.
    (4) The possibility of the three lines of the Bollinger Band moving laterally at the top is extremely small, and no judgment is made here.

The relationship between the candle line (or K line, the same below) and the Bollinger line, middle and lower tracks

  1. When the candle line breaks from below the Bollinger Middle Rail line and upwards, it indicates that the strong characteristics of the exchange rate begin to appear, and the exchange rate will rise. Investors should mainly buy in the medium and long-term.
  2. When the candle line breaks above the Bollinger Line above the Bollinger Line, it indicates that the strong characteristics of the exchange rate have been established, and the exchange rate will likely rise in the short-term. Investors should buy foreign exchange holding prices or buy in the short-term Predominantly.
  3. When the candle line breaks upwards on the Bollinger Band track, and its movement direction continues to rise, if the movement direction of the Bollinger line’s upper, middle, and lower tracks also simultaneously rises, it indicates that the strong characteristics of the foreign exchange market are still the same, and the exchange rate Will rise in the short term,
    Investors should resolutely hold the exchange rate up until the candlestick movement starts to show signs of turning down.
  4. After the candle line moves in the direction of the Bollinger Line for a period of time, if the movement direction of the candle line starts to turn down, investors should be extra careful. Once the candle line turns down and breaks the track of the Bollinger Line, It indicates that the short-term strong market of the exchange rate may end, and the exchange rate will fall sharply in the short term. Investors should sell short and short-term in time, especially for those currencies with large short-term gains.
  5. When the candle line breaks above the Bollinger Line from above and below, if the movement direction of the upper, middle and lower tracks of the Bollinger Line also starts to go down simultaneously, it indicates the short-term strong market price of the exchange rate. The short-term trend of the exchange rate is not optimistic, and investors should focus on diminishing rallies.
  6. When the candle line breaks from above the Bollinger middle rail and down to the middle of the Bollinger line, it indicates that the strong market price has ended in the early period, the medium-term downward trend of the exchange rate has formed, and investors should sell short in the middle line in time . It can be more confirmed if the upper, middle and lower lines of the Bollinger Line also go down at the same time.
  7. When the candle line falls downward and breaks the lower line of the Bollinger Bands and continues downward, it indicates that the exchange rate is in an extremely weak market. Investors should resolutely focus on holding currencies and try not to buy as much as possible.
  8. After the candle line has run down the Bollinger Band for a period of time, if the movement direction of the candle line shows signs of turning around and upwards, it indicates that the exchange rate will stabilize in the short term, and investors can open positions on dips.
  9. When the candle line breaks upwards from below the Bollinger band lower rail, it indicates that the short-term market price may be callback. Investors can buy in time and make a short-term rebound.
  10. When the candle line is always above the middle rail line and moving upwards with the middle rail line, it indicates that the exchange rate is in a strong upward process. As long as the candle line does not fall below the middle rail line, investors firmly hold it all the way.
  11. When the candle line has been under the middle rail line and moves downwards together with the middle rail line, it indicates that the exchange rate is in a weak decline process. As long as the candle line does not reverse upward and break through the middle rail line, stable investors can all the way Wait and see.