Bollinger Bands Indicator Application Rules

The BOLL indicator, also known as the Bollinger Bands indicator, is commonly referred to as Bollinger Bands. The BOLL indicator utilizes the concept of standard deviation from statistics to calculate a technical indicator used to judge the price trend. Generally, price movements tend to fluctuate within a certain range, and the Bollinger Bands indicator operates on this basis, automatically adjusting its direction based on price fluctuations.

When the Bollinger Bands are operating in a narrow and stable manner, it indicates that the current price fluctuations are small, and trading volume is also low; when the Bollinger Bands are operating in a wide and stable manner, it indicates that price fluctuations are larger but still within a certain range; and when the Bollinger Bands transition from a narrow to a gradually widening opening, it represents the best buying point for investors, as the price will gradually gain momentum, transitioning from weak, small fluctuations to strong movements.

The Bollinger Bands indicator is a very important reference for investors, and its intuitive, flexible, and trend-judging characteristics are precisely what investors favor.