The price of this contract has undergone a long period of sideways consolidation, and the upper and lower bands of the Bollinger Bands have contracted significantly. At this point, if the price breaks above the middle band of the Bollinger Bands (at the circled point) and the subsequent pullback does not break the middle band, this can be used as a basis for entering a long position. Additionally, if the trading volume can also effectively increase, the likelihood of the price rising after entering the position will be even greater. After entering a long position, as long as the price continues to operate between the middle band and the upper band, we can hold this long position indefinitely.
The extreme contraction of the upper and lower bands of the Bollinger Bands is a precursor to the market about to start moving, while the opening of the upper and lower bands indicates the beginning of the market's movement. The opening of the Bollinger Bands starts from the price breaking above the middle band and the subsequent pullback not breaking the middle band.