How to make orders according to brin belt in gold trading?
Bollinger band in gold trading is a very practical technical index designed according to the principle of standard deviation in statistics. It is composed of three track lines. The upper and lower lines can be regarded as the pressure line and support line of the price respectively. Between the two lines is a price average line. Generally, the price line Travels in the belt interval composed of the upper and lower tracks, and the position of the track is adjusted automatically with the change of the price.
When the wave band narrows, the intense price fluctuation may occur immediately; if the high and low points cross the edge of the band and return to the wave band immediately, there will be a shift back. So how to do the spot gold trading according to the brin belt?
1. When the gold price crosses the resistance line upward, it will form a stall, which is the selling time.
2. The gold price will rebound when it crosses the support line downward, which is an opportunity to buy.
3. When the price rises along the resistance line, although it does not break through, it is also a selling time to start to turn back.
4. When the price falls along the support line, although it does not break through, it is also an opportunity to buy when it starts to turn back.
5. When the bandwidth of brin belt is very narrow, it is a signal that the market is about to choose the direction of breakthrough. When using this method, we must be cautious, because at this time, the price often appears false breakthrough, which is often called "short trap" or "long trap" in textbooks. Investors should wait until the breakthrough direction is clear and the bandwidth of brin belt is enlarged before intervening. The best way is to eliminate the risk through position control.
6. When the price runs in the area between the 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. At this time, the trading strategy considered is to buy at a low point, not to short.
7. When the price runs in the area between the 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 the short market. At this time, the trading strategy is to sell at the high point without considering buying.
8. When the price moves in the boll medium track region, the market will oscillate in this region. At this time we take the trading strategy is short wait-and-see, to avoid this period of oscillation market.
9. The necking state of the boll channel. When the price goes up and down for a period of time, it will enter into an oscillatory rest within a range, and the oscillatory price area will become smaller and smaller. The boll channel is characterized by upper, middle and lower orbit contraction. This state is a harbinger of the big market. At this time we take the trading strategy is short wait-and-see rest.
10. The sudden expansion of Boll channel after necking. After a period of oscillation and consolidation, the boll channel will suddenly expand, which means that a number of explosive market has come, and then the market will enter the unilateral market. In this case, you can actively adjust your position to conform to the market.
11. If the boll slope is more than 45 degrees after a sharp rise, then the Yellow price will rebound after a sharp rise, and then continue to rise. At this time, our best single point can be judged by the boll line, which can be used as a reference: when the price of gold falls near the boll medium rail, there will be multiple single points immediately. On the contrary, this is also applicable in the case of a sharp fall.
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