#白宫加密报告发布# BOLL (Bollinger Bands) is a commonly used trend and fluctuation indicator in Candlestick analysis, mainly consisting of three lines: upper band (upper Bollinger Band), middle band (usually the 20-day MA), lower band (lower Bollinger Band), used to determine trends and potential signals based on stock price fluctuation range. Here are its core usage methods:

1. Determine the trend direction

- Uptrend: The stock price is moving upwards along the middle band, frequently touching the upper band, and the lower band is sloping upwards, indicating strong upward momentum.

- Downward Trend: The stock price is moving downward along the middle band, frequently touching the lower band, and the upper band is sloping downwards, indicating strong downward momentum.

- Sideways fluctuations: Stock prices fluctuate back and forth between the upper band and lower band, with the middle band flat. At this time, the trend is unclear, suitable for buying low and selling high.

2. Identify Buy and Sell Signals

- Buy signal: The stock price falls near the lower band, and there is no further downward momentum (such as the appearance of a bullish candlestick, or a bottom divergence), which may indicate a rebound signal.

- Sell Signal: When the stock price rises near the upper band, and there is no continued upward momentum (such as the appearance of a bearish candlestick or a top divergence), it may indicate a pullback signal.

- Breakthrough signal: The stock price effectively breaks through the upper band (accompanied by increased trading volume), which may indicate an accelerated upward trend; breaking down through the lower band (with increased volume) may indicate an accelerated downward trend.

3. Determine Fluctuation Amplitude

- Bands Narrowing: The distance between the upper and lower bands is decreasing, indicating that stock price fluctuations are weakening, and a significant directional breakthrough (trend change) may be imminent.

- Band Expansion: The distance between the upper band and lower band is increasing, indicating that the stock price is experiencing greater fluctuations. The current trend is strong, but caution is needed for potential weakening of momentum.

IV. Notes

- Use in conjunction with other indicators (such as MACD, volume) to avoid misjudgment from a single signal.

- Signals may vary across different periods (daily, weekly), and analysis should be combined with the operating period.

The core of the Bollinger Bands is to determine the trend and overbought/oversold conditions based on the relative position of the stock price to the bands, and in practical application, it needs to be flexibly combined with the market environment.