The ball indicator is an important indicator for studying stocks. Understanding the ball indicator can help us invest more effectively, but what is the ball indicator? What buying skills are there?
Boll index, also called Bollinger line index, is a medium and long-term technical analysis tool used to study and judge the trend of stock price movement. The Bollinger line indicators are composed of yellow, white and purple lines from top to bottom. The yellow line is the upper rail, the white line is the middle rail, and the purple line is the lower rail. Generally speaking, the Brin Line is a channel drawn around the fluctuation of the stock price. The purpose is to set a relatively high and relatively low definition of the stock price. When the stock price is close to the upper track, the line means that the stock price is on the high side. When the stock price is close to the lower track, it indicates that the stock price is on the low side. When the stock price fluctuates slightly, the track of the Brin line will narrow. When the stock price fluctuates greatly, the track will become very wide.
Brin index is a simple and effective combat index, and a flexible grasp of it can greatly improve the profitability of the stock market. The main functions of Bollinger Line are as follows:
1. Indication of support and pressure position;
2. Display overbought and oversold;
3. Indicate the trend direction;
4. It has channel function.
What are the application rules of the ball indicator?
1. When the stock price breaks down or approaches the lower track, it is supported by the lower track, and may rise in the short and medium term, which is a reference purchase;
2. When the stock price crosses or approaches the upper rail line upward, it may fall in the short to medium term due to the pressure from the upper rail line, which is a reference selling.
3. When the strip area of Bollinger line moves horizontally, it can be considered as being in the normal range. At this time, the above two references have higher reliability. If the ribbon area moves to the upper right or lower right, it is out of normal, and the error rate of using the above two methods increases.
4. When the Brin line is very narrow, intense price fluctuations may occur at any time. The Brin line is not 100% effective, and it also has some failures. First, the trap of buying low is that investors continue to fall after the so-called low buy or continue to fall after a small rise; The second is the high selling trap. After the stock is sold at the so-called high point, the stock price continues to rise or continue to rise after a small decline. In fact, various changes in the stock market are relative. The stock price is near the upper track or the lower track, just reflecting whether the stock price is relatively high or low. Investors also need to make a comprehensive judgment based on other indicators.
