• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The subscription multiple for the Japanese five-year government bond auction was 3.58, compared to 3.69 in the previous auction.Musk: Teslas V15 Autopilot is far safer than humans in completely unsupervised and complex situations.April 9th - According to CNN, the latest satellite images provided by the European Space Agency show thick black smoke rising from the Abqaiq processing facility in Saudi Arabias Atatürk. This comes after reports that Iran launched an attack on Wednesday. According to Saudi Aramco, the Abqaiq plant is the worlds largest crude oil stabilization unit, supplying approximately 5% of the worlds oil. The facility processes sour crude oil into sweet crude, which is then transported to Saudi Arabias east and west coasts via the "East-West Pipeline." Due to severe trade disruptions caused by the war with Iran, this pipeline is one of only two routes in the region that bypass the Strait of Hormuz.On April 9, Li Xingqian, Vice Chairman of the China Council for the Promotion of International Trade (CCPIT), met with a delegation led by Antonio Noronha, President of the Portugal-China Chamber of Commerce and Industry, in Beijing. They exchanged views on deepening exchanges and cooperation between the Chinese and Portuguese business communities, serving the development of foreign-invested enterprises in China, and deepening international cooperation in industrial and supply chains.On April 9th, MINIMAX-W (00100.HK) announced the release of MMX-CLI, a command-line tool for AI agents. According to the announcement, after connecting to MMX-CLI, the agent can natively call MiniMaxs latest full-modal models for programming, video generation, speech synthesis, and music creation in environments such as ClaudeCode and OpenClaw, without needing to adapt to cumbersome interfaces or write additional MCP servers.

How to use Bollinger Bands in trading?

Jason Douglas

Oct 25, 2021 13:27

What is Bollinger Bands?

Bollinger Bands are the technical indicator which consist of three lines: Upper rail, middle rail and lower rail.

middle rail is the price moving average, Upper rail is the repressive line, lower rail is the support line.

 1.jpg


How to use Bollinger Bands in trading?

When the price is between the middle and upper rail, the market is in a uptrend,  the trading strategy is to buy at low price.

When the price is between the middle and lower rail, the market is in a downtrend,  the trading strategy is to sell at high price.

 2.jpg

 

It is a volatile market when the price runs in the middle rail. At this time, we should make short positions near the upper rail and long positions near the lower rail.

 3.jpg

 

When the price runs along the upper rail , the market will rise unilaterally, we should make long positions and hold them.

 

 

When the price runs along the lower rail, the market will fall unilaterally, we should make short positions and hold them.

 4.jpg

 

5.jpg


After the price trend kept for a period of time, the channel shrinks and the price fluctuates in a small range, which is the precursor of a large trend market.

6.jpg 

 

The sudden expansion of the channel is a good time to enter the market. When the price break up we can go long, while the price break down go short.

 7.jpg

 

 8.jpg

When the expansion reaches a certain range and the price breakouts, it means that the market will reversal. At this time, the trading strategy is to go short after breaking through the upper rail and go long after breaking through the lower rail.

 9.jpg

 

 10.jpg

Are you ready to use Bollinger Bands!