Introduction to stir frying Gold: basic application of Boll
Boll index is a very simple and practical technical analysis index designed by John Brin, an American stock market analyst, according to the principle of standard deviation in statistics.
The boll index calculates the "standard deviation" of the stock price, and then calculates the "trust interval" of the stock price. The index draws three lines on the graph, of which the upper and lower lines can be regarded as the pressure line and support line of stock price respectively, and there is an average line between the two lines. The parameter of brin line index should be set as 20. Generally speaking, the stock price will run in the channel formed by pressure line and support line. Boll can also be used in the analysis of gold technology.
Basic application of Boll
1. If the price is running above the medium rail, it means that there are too many short lines;
2. If the price is running under the medium rail, it means that the short term is short;
3. After the price breaks through the upper rail line, it does not fall below the middle rail line when exploring the middle rail line, indicating that the market is bullish in the future.
4. If the price falls below the lower trajectory and does not stand above the middle trajectory when it rebounds, it will be bearish in the future.
5. When the channel suddenly narrows sharply, it shows that there will be a significant turning point in the price direction, that is, there may be a "big market". At this time, we can focus on it and judge it in combination with other index technologies.
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