大饼冰

📖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.

📖Market Analysis Knowledge——EMA
1、EMA: Exponential Moving Average (EMA)
It is a curve calculated based on stock price data, used to analyze the trend of stock prices. When calculating EMA, more weight is given to recent stock price data, which allows it to reflect the latest changes in stock prices more promptly than simple moving averages. For example, when stock prices rise or fall rapidly, the EMA will quickly reflect this change in trend.
Investors can judge whether the stock price is in an upward trend (EMA is inclined upwards) or a downward trend (EMA is inclined downwards) by observing the direction of the EMA, and can also use the crossover between EMAs of different periods (e.g., when a short-term EMA crosses above a long-term EMA forming a 'golden cross' as a buy signal; when a short-term EMA crosses below a long-term EMA forming a 'death cross' as a sell signal) to assist in making buy and sell decisions.

2、EMA Market Analysis:
① Observe the trend of the line
When the EMA line is inclined upwards, it indicates that the market is in an upward trend, and prices are continuously rising; conversely, if the EMA line is inclined downwards, it means the market is in a downward trend, and prices are falling.

② Pay attention to the position of the line
If the price is above the EMA line, it indicates that the current market is relatively strong, with bulls in control; while if the price is below the EMA line, it indicates a relatively weak market, with bears having the upper hand.

③ Be alert to crossover signals
When the short-term EMA crosses above the long-term EMA, forming a 'golden cross', it is often seen as a buy signal, suggesting that prices may rise; when the short-term EMA crosses below the long-term EMA, forming a 'death cross', it is generally a sell signal, implying that prices may fall.

④ Determine support and resistance
When stock prices pull back to near the EMA, the rising EMA line often acts as support, preventing prices from falling further; conversely, when prices rise to near the EMA, the declining EMA line may become resistance, limiting further price increases.

⑤ Analyze divergence phenomena
If prices reach new highs but the EMA line fails to rise concurrently, or if prices reach new lows but the EMA line fails to fall concurrently, such divergence may indicate that the trend is about to reverse.

⑥ Choose the appropriate period
Short-term EMAs, such as the 10-day and 20-day, can reflect recent price changes and are sensitive to short-term fluctuations, making them suitable for short-term trading; long-term EMAs, such as the 50-day and 200-day, are smoother and can show long-term trends, making them suitable for long-term investors.

Mutual Help and Assistance

📖Market Viewing Knowledge—MA
1. The Nature of MA
- MA (Moving Average) is a statistical tool that averages the stock price (index) within a certain period of time and connects the average values ​​at different times to form a curve. For example, the 5-day moving average is an average value obtained by adding the closing prices of the last 5 trading days and dividing it by 5. As the trading days go by, the new 5-day average values ​​are continuously calculated and connected to form a 5-day moving average.
2. Single MA line observation
- Trend judgment: If the MA line is tilted upward, it means that the stock price is in an upward trend for a period of time. For example, when the 30-day MA line is upward, it means that the average price of the past 30 trading days is rising, and the stock may be in a medium-term rising market. On the contrary, if the MA line is tilted downward, it is a downward trend.
- Support and pressure effect: When the stock price falls back to the vicinity of the MA line, the MA line may play a supporting role. For example, if the stock price falls to the 60-day MA line and can stabilize and rebound, it means that the 60-day MA line supports the stock price, and investors will pay attention to whether this support is effective to judge the subsequent trend of the stock price. Similarly, when the stock price rises near the MA line, the MA line may become a pressure line, hindering the further rise of the stock price.
3. Comprehensive observation of multiple MA lines
- Combination of short-term and long-term MA lines: Short-term and long-term MA lines are usually observed at the same time, such as 5-day MA and 20-day MA. When the short-term MA line (such as 5-day MA) crosses the long-term MA line (such as 20-day MA) upward, this is called a "golden cross", which is a relatively positive signal and may indicate that the stock price will enter a rising stage. On the contrary, when the short-term MA line crosses the long-term MA line downward, it is called a "death cross", which may be a signal of a falling stock price.
- Arrangement of MA lines of different periods: If the short-term MA line is at the top, the medium-term is second, and the long-term is at the bottom, and all three lines are upward, this is a long arrangement, indicating that the stock is in a strong rising stage. For example, if 5-day MA>10-day MA>30-day MA and all three lines are upward, the market sentiment is high and the bulls are dominant. On the contrary, if the long-term MA line is at the top and the short-term MA line is at the bottom, and all three lines are downward, it is a short position arrangement, indicating that the stock is in a downward trend.
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