Core Principles
Three Lines Up: Buy at the Middle Line, Sell at the Upper Line. Three Lines Down: Buy at the Lower Line, Sell at the Middle Line. Three Lines Flat: Buy at the Lower Line, Sell at the Upper Line. Three Lines Opening: Trend Accelerating, Increase Position. Three Lines Closing: Indeterminate Direction, Wait and Observe.
Practical Skills
Combine with MACD: Use BOLL to determine the fluctuation range, MACD confirms trend divergence, which can reduce false breakouts.
Focus on the Middle Line: The Middle Line is usually the 20-day moving average; a strong stock pulling back to the Middle Line is a buying opportunity, while breaking below the Middle Line requires caution for trend reversal.
Prioritize Patterns: Three Lines Narrowing indicates a potential change, Opening indicates increased volatility, and should be combined with K-line patterns for comprehensive judgment.
Precautions
Bollinger Bands should be used in conjunction with other indicators to avoid misjudging trends in a volatile market.
The Upper and Lower Lines are only for reference as resistance/support levels; actual operations should be combined with volume, KDJ, and other indicators. #加密市场回调