The Bulin Channel is composed of upper, middle and lower rails. It divides the range of price fluctuations into 4 areas. The upper rail line is also called the pressure line, the middle rail line is also called the price average line, and the lower rail line is also called the price average line. The trajectory is also called the support line. The BOLL channel is very effective as a technical indicator for tracking trends, and it is easy to apply. The following is a brief introduction to the various situations that occur in the BOLL channel and the trading strategies we should adopt in various situations:

1. When the price runs between the middle track and the upper track of BOLL As long as the price does not fall below the middle track, it means that the market is in a long market. At this time, the trading strategy we consider is to buy at low points and not short.

2. When the price runs in the area between the middle rail and the lower rail of BOLL, as long as the price does not break through the middle rail, it means that the market is in a short market. At this time, our trading strategy is to sell at high points. Out, don't consider buying.

3. When the price moves along the upper track of BOLL, the market is unilaterally rising. In this case, it is generally an explosive market. Those holding long orders must hold on, as long as the price does not deviate from the upper track. The area is patiently held.

4. When the price moves along the lower track of BOLL, the market is in a unilateral downward trend. This situation is generally a wave of rapid decline. As long as the price does not deviate from the lower track of the short order, you need to do It is also held patiently.

5. When the price runs in the BOLL mid-track area, the market behaves as an oscillating market, and the market will oscillate up and down in this area. This market is the most destructive to friends who are following the trend, and they often suffer losses from being slapped in the face. At this time, the trading strategy we adopt is to wait and see with a short position to avoid this period of oscillating market conditions.

6. The shrinking status of the BOLL channel. When the price rises and falls for a period of time, it will enter an oscillation rest within a range, and the oscillating price area will become smaller and smaller. The BOLL channel appears as three track contractions: upper, middle, and lower. This state is a sign before the big market is coming. The trading strategy we adopt at this time is to wait and see with a short position.

7. The sudden expansion state after the contraction of the BOLL channel. When the market oscillates for a period of time while the BOLL channel is constricting, the BOLL channel will suddenly expand, which means that an explosive market has arrived, and from then on the market will enter a unilateral market. In this case, we can actively adjust our positions and build positions in accordance with the market trend.

8. False breakthrough market in BOLL channel. When the BOLL channel shrinks and before a big market arrives, there will often be a false breakthrough. This is a trap created by the main force before exerting force. It is also what is often called a "short trap" or "long trap" in textbooks. . We should be alert to the occurrence of this situation, and the best way is to eliminate the risk through our position control. When we discover it is a trap, we still have enough funds and time to adjust our position!

The above are various situations that occur in the application of BOLL channel technical analysis. As a trend following indicator, the BOLL channel period we choose should be in weekly units. When the price moves unilaterally, in order to avoid unnecessary losses caused by large corrections, we use the daily BOLL channel as an exit after making huge profits. basis.

By doing this, we can not only grasp the big market trends, but also stop profits in time!