Stock Technical Analysis - BOLL channel of the whirlwind use
What forexrebatenetwork forex rebate bestforexrebate is determined by three lines, the middle is an ordinary moving average. the upper Whatisforexrebate lower edges of the BOLL channel are called the upper and lower edges, respectively. The BOLL channel is a measure of stock cashback forex variability. The BOLL channel is essentially an area defined by a standard deviation level, and the standard deviation is a measure of variability. The significance of this is that the middle line is the center of deviation to measure stock price changes. It is important to note that the upper and lower margins of the BOLL do not represent the upper and lower limits of the stock price. The BOLL is a statistical indicator. Why is the BOLL channel a measure of stock price variability, in terms of application: to collect certain stock price data, and then according to the resulting measure of stock price variability, to estimate the future changes in stock prices, such a measure tool. From this point of view, its application belongs to the statistical method. From a mathematical point of view, all the data of the BOLL indicator is obtained by weighting the statistical data (Ⅰ weighted value and Ⅱ weighted number) and then processing it into a graphical image ------ that is - we see the BOLL channel. Mathematically speaking BOLL is a specific application of statistical calculation methods In summary, the BOLL channel should belong to statistical indicators. The use of the BOLL channel: ① The application of the mathematical statistical sense; For the use of the BOLL channel, the inventor of the sub-indicator, Mr. John Bollinger, suggested the use of a weighting of 20, that is, the use of 20 days of moving average weight. The standard dispersion value using 20 unknown quantities. For this, one wonders: why not use longer days and shorter days? Of course, using a longer number of days would allow more data to be counted. However, this will make the standard dispersion value and the stock price is not close enough, the consequences can be imagined --- will lead to many errors in judgment. And using a shorter number of days, of course, is more relevant to the stock price change, but also lost statistical significance --- In order to balance these two contradictions, I am in agreement with the inventors proposed program. That is, -------- use the 20-day moving average weight... ②Practical application: As a trend line application: the width of the BOLL channel changes for the trend change has a sense of ahead of the tip. This point was realized in the southeast forum friends Atoob brothers. The current cyclone on the use of the BOLL channel: When found that the stocks of the 5 day MA, 10 day MA, 20 day MA, are very close to each other, and confused with its future trend of change, the BOLL channel can help. △Capture trend; 1,BOLL channel suddenly close, foretelling the current trend will reverse .... 2,BOLL channel suddenly open, the same so the current trend will be reversed .... 3, the longer the BOLL channel narrows, the smaller the mouth, the more obvious and dramatic the change in the market! △Capture price; 1,Dramatic price changes occur more after the BOLL channel tightens! 2, when the price moves out of the BOLL up and down the sideline, indicating that the current price change may continue! From the specific use of the BOLL indicator is also a trend and counter-trend indicator function, this is the most satisfactory knowledge since I killed into the stock market understanding, the BOLL channel can not only catch the stock price changes can be strangled individual shares!