The Bollinger Band indicator is to calculate the fluctuation range of the stock price trend through the standard deviation statistics of periodic stock price changes. Because the fluctuation of market price trend is different, the fluctuation of bollinger bands will be different, and the high and low bands may be enlarged or reduced, which is called the opening and closing of bollinger bands in the industry. So what do bollinger bands mean by opening and shrinking? Is it risk or opportunity? 1. bollinger band indicator opening When the stock price is above the bollinger band indicator, the high line and the low line of the bollinger band indicator graph expand, and the trading volume is in a continuous heavy volume stage, indicating that there is a high probability that the stock price will have a continuous rising opportunity. When the stock price is below the bollinger band indicator, the high line and low line of the bollinger band indicator graph expand, and it continuously oscillates near the low line, and the trading volume is in the stage of continuous contraction after heavy volume, indicating that there is a high probability that the stock price will have a continuous decline risk.

2. bollinger band indicator necking When the stock price is above the bollinger band indicator, the high line and the low line of the bollinger band indicator graph are narrowed, and they continue to fluctuate near the high line, and the trading volume is in the stage of a small increase in the downturn, indicating that the stock price is gestating a rising market, and there is limited room for decline, which is a reference for buying opportunities. When the stock price is below the bollinger band indicator, the high line and low line of the bollinger band indicator graph shrink, and it continuously oscillates near the low line, and the trading volume continues to shrink after a small amount of volume, indicating that there is a high probability that the stock price will have a continuous decline risk and the upward momentum is weak, which is a reference for selling risk. Generally speaking, investors can refer to the opening and closing of the Bollinger Band indicators in the above ways to judge opportunities or risks. However, investors need to pay attention to the fact that there are no perfect technical indicators and technical graphics in the market, and there will be some misleading information. Need to be combined with other indicators and market environment as well as individual stock information for reference. The stock market is risky, so you need to be cautious in investing.