The Chinese name of the BOLL indicator is “Bolin Line”. It is a technical indicator that limits the trajectory of stock prices.
Investors should pay attention to the following points when using Bollinger Bands indicators:
- When the stock price volatility increases, the distance between the upper rail, the lower rail and the stock price will increase, and when the stock price volatility decreases, the distance between the upper rail and the lower rail and the stock price will decrease.
- The three curves of the Bollinger Bands indicator will fluctuate with the fluctuation of the stock price. When the stock price fluctuates greatly, these three curves may also rise or fall rapidly. Therefore, sometimes the stock price gains support after the Bollinger Bands are lowered. The lower Bollinger Band falls, and there may be a larger decline in the future. Sometimes after the stock price encounters resistance on the upper Bollinger Band, as the Bollinger Band rises, there may be more room for future stock prices to rise.
- In actual combat, investors can combine BOLL indicators and KDJ indicators for short-term operations.