🧧The student successfully graduated and turned the position around in 7 days, recovering all previous losses. They took profits and turned the position again! Position management and taking profits and losses are very important!
🧧Today's live broadcast cut the short position by another 100 points, it's really refreshing to follow the trend. Those who joined the broadcast room are enjoying it again!
🧧Yesterday's live broadcast at 2300 short position gained over 200 points, and the long position at 2140 also gained 200 points. Trading one way is really enjoyable, making profits from both sides is so much fun.
🧧🔍 Basic Principles of Bollinger Bands: The Price's 'Safety Barrier'
• Composition: Composed of three lines
◦ Middle Band: 20-day moving average, serves as the 'spine' of the price, reflecting the medium-term trend.
◦ Upper Band: Middle Band + 2 times the standard deviation.
◦ Lower Band: Middle Band - 2 times the standard deviation.
• Core Logic: Approximately 95% of the time, the price will fluctuate between the upper and lower bands; when the price touches or breaks through the bands, it often signals a trend reversal or acceleration.
• Channel 'Breathing': The width of the Bollinger Bands is determined by market volatility. When volatility is low, the channel contracts (calm period); when volatility is high, the channel expands (active period). 🎯 Practical Signals and Operational Strategies
1. Extreme Reversal: Touching the 'Red Line' will cause a reversal
◦ When the price breaks through the upper band, it issues an overbought warning, indicating that the short-term increase is too large, and the price is likely to return to the middle band (downward adjustment).
◦ Similarly, when the price breaks below the lower band, it is an oversold signal, suggesting that the price may rebound.
◦ This is a typical manifestation of mean reversion and serves as a warning for short-term tops/bottoms.
2. Go with the Trend: Ride the 'Waves of the Trend'
◦ If the price continues to run near the lower band, it indicates a very strong downward trend; at this time, do not easily attempt to catch the bottom, but rather short the trend.
◦ Conversely, when the price runs near the upper band, the upward trend is strong, making it suitable to go long with the trend.
3. Key Signal: 'Contraction' Before the Storm
◦ When the Bollinger Bands have been contracting for an extended period (a 'contraction'), it is like a tightly compressed spring, indicating that the market is about to change direction, and a significant one-sided market (sharp rise or fall) is likely to occur.
◦ This is a turning point from low to high volatility and an important opportunity to capture major market movements. 💡 Advanced Techniques