First, set the parameters of BBI to No.3, No.6, 12 and No.24..
Second, set the parameters of long line BBI to No.6, 18, No.54, 162, and set the main drawing drawn with new parameters as e BBI.
Third, overlap BBI and EBBI. When the BBI index of a stock suddenly exceeds e BBI from bottom to top, if the VOSC index is positive, the stock can be characterized as a dark horse in a state of war preparation, which needs special attention.
4. When VOSC falls below -200 and BBI rises at a low level, it will be an important short-term buying signal if the VOSC indicator can rise at a very fast speed and cross the 0-axis.
BBI is essentially an improvement on horses, so it also has some shortcomings similar to horses:
The lag of 1. indicator signal often occurs when the stock price is close to the short-term head, and BBI only shows the buying signal, while when the stock price is close to the short-term bottom, BBI only shows the selling signal.
2. The frequent occurrence of indicator signals, especially when the trend is unclear, is even more serious.
3. A number of moving averages are set in MA, which are divided into growth period, middle period and short period. They are applied at the same time and compared with each other, which effectively makes up for the defects of a single moving average. However, the BBI indicator only sets an average line, which only acts as a short-term long-short watershed.
BBI index, which means long and short index in Chinese, is a comprehensive index, which refers to the weighted average of moving averages on different days. Users often choose different moving averages, so BBI index solves this problem. In BBI index, users choose less long-term time and more recent data. BBI index has both the stability of medium-term moving average and the sensitivity of short-term moving average, which is very suitable for users who invest steadily.
Application rules
1. The stock price is higher than BBI, which is regarded as a bull market.
2. The stock price is lower than BBI, which is considered as a short market.
3. In the falling market, if the closing price of the day falls below the BBI curve, it means that it turns short and is a selling signal.
4. In the rising market, if the closing price of the day rises above the BBI curve, it means that there is more idling, which is a buy signal.
5.BBI is the support line, which can play an auxiliary role.
6. When falling and rebounding, BBI is the pressure line, which can play the role of resistance.