The forecasting tool commonly used chart (Chart Indicators) What is the toolbox of the transaction? Simply put, your toolbox is what you will use to build your trading account. For this article, you learned the forecasting tool (indicator, hereinafter referred to simply as the only tool ). You may not need to use all these tools, but it's still good for you to have a choice. Let's get started. 5.1 Bollinger Bollinger tapes are used to measure the volatility of the market. This tool tells you the market quiet or active! When the market is quiet, the ice sheet to shrink; and the vibrant market wider band. Note on the chart below the price band stands still almost close together, but when prices rose ribbon expand outward. That's all that we have. Well, I could go on and annoy you with the history of the Bollinger band, how to calculate it, the mathematical formulas behind it and further more, but I really do not want to give more. I think it's important is to show you how to use Bollinger bands to your trading. 5.1.1 the Bollinger Bounce first thing you should know about Bollinger bands is the price tends to return to the middle band. This is the whole meaning of the Bollinger bounce. For this case, look at the chart above you can tell how the upcoming price? If you answer correctly, you are down! As you can see, the price back down to the middle of the ice sheet. That is all that we have. What you just saw was a classic Bollinger bounce. The Bollinger bands act as support and resistance levels small. For a long time frame, the band will be stronger. Many traders have developed systems based on the bounce to thrive. This strategy is best used when the market is up and down between level 02 and there is no clear trend. Now let's see how to use Bollinger bands formed as the market trends. 5.1.2 Squeeze Bollinger Bands Name squeeze (compressed) explains itself quite clearly. When the strips bonded together, it usually means that one break is imminent. If the bracket starts beyond the ribbon on the direction change will usually increase. If the bracket starts beyond the ribbon under the direction change will usually continue to go down. Looking at the graph above, you can see the band pressed again. Rates start beyond the upper band. Based on this information you think prices will change look like? If you answer correctly, you increase. This is how a typical Bollinger Squeeze works. This strategy is designed so that you could catch an early change. This format does not happen every day, but you can spot them a few times a week if you look at the graph of 15 minutes. Now you know what are the Bollinger Bands tape, and you know how to use them. There are many other things you can do with Bollinger Bands, but the most common 02 tactics. And now you can add a tool, we can switch to another tool.
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