Forex Bollinger Bands Boll indicator usage skills, how to set Boll indicator parameters?

The main functions of foreign exchange boll include indicating support and pressure positions and trends, showing overbought, oversold and channel effects. It is precisely because boll has more functions and is very convenient to use, so it can play a very important role when foreign exchange investors analyze the exchange rate trend. This article will focus on introducing the skills of using the forex boll indicator and the skills of setting the parameters of the boll indicator.

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Like MACD, RSI, KDJ and other indicators, the Bollinger Bands indicator is also the most practical technical analysis reference indicator in the foreign exchange market, which itself includes trend indicators and oscillators. Bollinger Bands, also known as Bollinger Bands, were designed by John Bollinger in the 1880s based on the standard deviation principle in statistics and can be used to judge trends. A clear and reliable signal avoids the situation of slow rise after buying, and reduces a lot of losses for investors, so it is sought after by investors, and it is also a very simple and practical technical analysis indicator.

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How to use the Forex Boll indicator

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1. When the price runs in the area between the Bollinger middle rail and the upper rail, as long as the price does not fall below the middle rail, it means that the market is in a bull market, and the trend will also rise at this time. fall. When the price runs along the upper track of Bollinger, the market is unilaterally rising. Those who hold a long order should hold it. As long as the price does not deviate from the upper track area, hold it patiently.

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2. When the price runs in the area between the Bollinger middle rail and the lower rail, as long as the price does not break through the middle rail, it means that the market is in a short market, and the trend will go down. At this time, you should sell at rallies instead of buying up. When the price runs along the lower track, the market is in a unilateral downward trend. This situation is generally a drop in the market. The empty order held should be patiently held as long as the price does not deviate from the lower track.

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3. The market fluctuates and there must be a certain space. The connection between the upper and lower high and low points is basically parallel, and the price generally moves back and forth around the middle rail of the price. At this time, you can sell high and buy low, place a short order on the upper track of the Bollinger Band, and at the same time place a long order on the lower track of the Bollinger Band, to sell high and buy low.

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How to use Bollinger Bands in Forex Trading

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As one of the commonly used technical indicators in the foreign exchange market, Bollinger Bands are very convenient to use. Once used properly, Bollinger Bands can give clear signal prompts to the market trend, so they are favored by professional investors. Bollinger Bands have the following functions:

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1. The cloth line can indicate the position of support and pressure

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2. Bollinger Bands can show overbought and oversold

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3. Bollinger Bands Can Indicate Trends

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4. Bollinger Bands have a channel effect.

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In the normal range, the techniques and methods used by Bollinger Bands

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The so-called normal range of Bollinger Bands usually means that foreign exchange prices run within a certain width of the band, without large fluctuations, but in a relatively balanced state. At this point, the use of Bollinger Bands is also very simple.

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1. When the exchange rate crosses the upper limit pressure line, the Bollinger Band acts as a selling point signal

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2. When the exchange rate crosses the lower limit support line, it is a buy point signal

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3. When the exchange rate crosses the middle boundary line from bottom to top, it is shown as an overweight signal

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4. When the exchange rate crosses the middle boundary line from top to bottom, it is a sell signal.

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How to set Boll indicator parameters?

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The premise of setting is to let as many K-lines as possible fall within the range of the boll indicator. Through such standard and parameter settings, we can make the boll indicator the most accurate. Generally speaking, the stock price will run in the channel formed by the pressure line and the support line, so the best parameter of the boll indicator is related to its most stable moving average and the fluctuation of individual stocks. With the stable K line as the central axis, the fluctuation of individual stocks As we tentatively set the size of the standard deviation, so that we can get a boll indicator that best suits the stock.

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Usually different stocks have different properties. Some stocks will continue to fluctuate along the 60-day line, and some stocks will fluctuate up and down the 30-day line. At this time, we need to select a relatively stable moving average and set it as the middle rail, and then set its standard according to the fluctuation of individual stocks. The difference is set to 2, 3 or 4, so that the Bollinger Bands parameters we set are more suitable, and the K-lines of its individual stocks can be completely included in it.

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How to see the ultra-short-term foreign exchange Bollinger Bands

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1. Bollinger Bands Level

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The upper, middle and lower tracks of the Bollinger Bands are almost horizontal, and they are out of the shape of an equal sign. This is the sideways market that we can easily judge. At this time, combined with the reversal signal, the highs are bought to fall, and the lows are bought to rise. The winning rate is extremely high.

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2. Bollinger Bands Opening

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The opening of the Bollinger Bands means that the upper and lower rails of the Bollinger Bands are trumpet-shaped and have a figure-shaped outer shape. At this time, the exchange rate fluctuates violently, and it is easy to break through to form a unilateral market, which is suitable for homeopathic trading. Friends who like to make orders against the trend must resist the temptation at the position where the Bollinger Bands open, and give up the signal that they should not make a move.

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3. Bollinger Bands Narrowing

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Bollinger Bands are narrowed, similar to an inner character, and the horn is narrowed. At this time, the long and short forces of the exchange rate are evenly matched, and it is temporarily impossible to clearly judge the market trend. At this time, the K-line is often very short and dense, and the trend is irregular. For this reason, investors are not advised to enter the market for trading.

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4. Bollinger Bands Parallel Up or Down

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When the Bollinger Upper and lower rails are almost parallel up or down, it indicates a unilateral market that lasts for a long time. At this time, the trend is obvious, and it is not appropriate to reverse the trend. If you insist on reversal trading, you can do a homeopathic reversal, combined with the Bollinger middle rail or the 14-day moving average and the trend channel, to do a homeopathic reversal of the secondary wave callback.

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Regarding the issue of boll indicators, this article focuses on the use of foreign exchange boll indicators, as well as the skills of boll indicator parameter setting. All in all, the boll indicator is very important data in the foreign exchange industry. Investors must really understand and use it well, so as to seize more powerful opportunities in foreign exchange investment.