📖Market Knowledge——BOLL

BOLL, or Bollinger Bands, is a type of technical analysis indicator.

Its main function is to determine the price volatility range by calculating the standard deviation of stock prices, thereby helping investors assess the high and low positions of stock prices and future trends. The upper and lower bands can show the potential volatility range of stock prices, while the middle band is often regarded as a medium-term reference line for stock prices.

When looking at the BOLL indicator, there are generally the following key points:

- Assessing the stock price position: If the stock price is close to the upper band, it may indicate that the stock price is at a relatively high level and has a risk of correction; if close to the lower band, it may be at a relatively low level and could have a rebound opportunity.

- Observing the opening changes: If the Bollinger Bands are gradually widening, it represents that price volatility is increasing, which may signal a change in the market; if the bands are narrowing, it may suggest that price volatility is decreasing and a direction is about to be chosen.