The variation range of RSI is 0- 100, and the strength index values are generally distributed in 20-80.
80- 100 sells very strongly.
Top 50-80 buyers
20-50 weak wait and see
0-20 Very weak buy
Boll index is to calculate the "standard deviation" of the stock price, and then find the "trust interval" of the stock price. The indicator has drawn three lines on the map, in which the upper and lower lines can be regarded as the pressure line and the support line of the stock price respectively, and there is an average line of the stock price between the two lines, and the parameter of the Bollinger Band indicator is preferably set to 20. Generally speaking, the stock price will run in the channel formed by the pressure line and the support line.
Bollinger bands have the following functions: 1, and bollinger bands can indicate the position of support and pressure; 2. Bollinger bands can show overbought and oversold; 3. Bollinger bands can indicate trends; 4. Bollinger Bands have channel function. Because of its multiple functions, bollinger bands are very effective and convenient to use. Once mastered, the signal is clear and flexible to use. It is deeply loved by professional investors and is also one of the most commonly used technical indicators in the international financial market. 1. The normal range of technologies and methods used in the bollinger Band is usually that the stock price runs within a certain band width, which means that the stock price has not experienced extreme ups and downs. In a relatively balanced state, the use of bollinger bands is very simple at this time. 1, when the stock price crosses the upper limit pressure line (dynamic upper limit pressure line, static top pressure line BOLB 1), sell the signal; 2. When the stock price crosses the lower support line (dynamic lower support line, static lowest support line BOLB4), buy some signals; 3. When the stock price crosses the middle boundary from bottom to top (from BOLB4 to BOLB3 statically), it is an overweight signal; 4. When the stock price crosses the midline from top to bottom (statically with BOLB 1 crossing BOLB2), it is a selling signal. Second, in a strong market, the stock price rises continuously, usually between BOLB 1 and BOLB2. When the stock price rises continuously for a long time, the stock price crosses BOLB 1. On the second day, it broke through BOLB 1 and further broke through BOLB2, driving the BOLB 1 curve, and there was an obvious inflection point from rising to flat. This is the selling signal. Third, the significance of shrinkage: after several waves of decline, the stock price often turns into a long-term narrow consolidation. At this time, we found that the upper and lower limits of the bollinger band are extremely small and narrow. It's getting closer. The difference between the highest and lowest intraday share prices is very small, so there is no room for profit in the short term. Often even the handling fee can't be earned. Intraday trading is inactive and the trading volume is scarce. Investors should pay close attention to this shrinking situation, because a big market may be brewing. Once the trading volume increases, the stock price rises, the bollinger band expands and the rising market begins. 2. For example, the Bollinger Band will be extremely small at a high level, and once the stock price breaks down, the opening of the Bollinger Band will be enlarged, and a round of decline will be inevitable. Fourth, the significance of the opening of the Bollinger Band: 1. When the stock price rises from a low level to a high level after several waves, the openings of the top pressure line and the bottom support line of the Bollinger Band reach a great extent, and the openings cannot be further enlarged, which is a selling signal, usually followed by a sharp decline or market adjustment. 2. When the stock price has fallen sharply after several waves, the opening of the upper and lower bollinger bands can no longer be enlarged, the pressure line of the upper bollinger band shrinks from top to bottom in advance, and the support line of the lower bollinger band shrinks from bottom to top, a round of decline will come to an end. V. Precautions for using bollinger bands 1, the parameter setting of bollinger bands should not be less than 6, and the static dry heave value is usually10; When the dynamic money dragon is set, it is generally 20. 2. When using the bollinger Band, pay attention to whether it is in the normal area or the abnormal area. In the abnormal area, you can't simply sell at the upper limit and buy at the lower limit. 3. When the opening is narrowed, it is easy to catch bull stocks at a low level, but once the stock price breaks at a high level or shrinks, there is often a large room for decline. 4. We can use bollinger bands to match other indicators, and the effect will be better.