Classic Bollinger Bands BOLL

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East forex cashback cashbackforexbtcs forexcashbackcalculatorvented by Bollinger, is a variety of investment markets widely used path analysis indicators in Bollinger invented Bollinger b Eastforexcashbacks before, similar path analysis indicators have been used in the financial markets, and later Bollinger will improve this method and systematize the Bollinger bands set up method is relatively simple, the general middle track to take a medium-term moving average, the default parameters for 20 days, the upper track takes the value of the moving average plus 2 times the standard deviation, the lower track takes the value of the moving average minus 2 times the standard deviation standard deviation in investment is to describe the risk of a quantity, 2 times the standard deviation of the Bollinger band indicates that the cashback forex rate fluctuations within the Bollinger band probability of more than 95.44% standard deviation of the meaning and formula in all statistics textbooks and CPAs "financial management" textbook are There are discussions, interested investors can check I think Bollinger himself important contribution is not its invention of the Bollinger band indicator, but his use of the Bollinger band indicator emphasis on the concept of relative high and low, and in the analysis of the implementation of this idea although the previous use of various indicators sophisticated investors have realized that the location of high and low are relative, but few people believe in and seriously The Bollinger band has some basic principles of use:   1. Bollinger band bandwidth tightly narrowed, is the market will choose the breakthrough direction of the signal in the use of this method investors must be cautious, because at this time the exchange rate will often appear false breakthrough, investors have to wait for the breakthrough direction is clear, Bollinger band bandwidth amplification before intervention  2. Amplify to reach the maximum since 6 months, when the market has the risk of turning 3. When the upper rail continues to enlarge, while the lower rail began to converge, or the opposite, are the precursors of the market turn Practical cases how to determine the market turn According to Bollingers own views, one of the roles of the Bollinger band is to find out when the currency trend may be in the process of rising market Turning trend, Bollinger mentioned several methods, basically the domestic has been widely accepted and adopted method but one of the methods is domestic investors are not quite familiar with the method, here to introduce In the process of rising market, if the trend is a unilateral upward pattern, investors are often difficult to find the market reversal of the harbinger Bollinger believes that if in the unilateral potential, Bollinger band on the rail has been Enlarge, and the lower Bollinger band began to converge, that is, the lower rail from downward movement to upward movement, it can be considered that the market may reverse such as Figure 5.19 is February 2002 to September EURUSD trend chart from the chart can be seen, in the euro accelerated upward when the upper and lower Bollinger band synchronous expansion, but to June 26 (circle position in the chart), although the euro exchange rate still maintains the upward trend, but the lower rail of the Bollinger band has begun to converge, which is a precursor to the market turn. To the October 2002 trend, this is a classic example of the Bollinger band relative high and low concept in the first part of the chart, the dollar exchange rate fell, until the first circle position in the chart the dollar exchange rate began to stop rebounding, note that the low point of the dollar exchange rate was just close to the lower rail of the Bollinger band soon after the dollar exchange rate fell again, but this time the dollar exchange rate fell to a distance from the last low (the second circle position in the chart The second circle position) has begun to rebound, when the exchange rate touched the lower rail of the Bollinger band thereafter in the third circle position in the chart, the dollar exchange rate bottomed out again, the exchange rate also touched the lower rail of the Bollinger band again Based on Bollingers theory, although the dollar began to rebound three times in different positions, but the lower rail of the Bollinger band as a reference, the relative position of the three rebound (relative to the lower rail of the Bollinger band) I further elaborated that the first two rallies were only painful over the middle rail of the Bollinger band and began to fall, while the third rally, the exchange rate soon touched the upper rail of the Bollinger band position, which indicates that the strength of this rally is stronger than the previous two, which is the bottom of the market reversal omen

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