The Use Of Brin Line And Brin Bandwidth

During the consolidation process, the stock price will oscillate within a certain range. At this time, the suitable method is to sell high and sell low.

Each fluctuation is consuming the enthusiasm of the shareholders to catch up and fall, consuming the energy of the shock, so the stock price amplitude is always gradually decreasing during the consolidation process.

When the amplitude is small enough to drop and absorb, there is no profit margin. The game will not be able to continue to play. At this point, someone will begin to seek for a breakthrough in the consolidation area, and search for new space to play the game.

During the breakthrough, the stock price broke through the original consolidation interval and launched a rapid rise and fall.

Unless the banker highly locks chips, no matter whether it rises or falls, this rapid movement will make participants unstable and huge.

Therefore, from the point of view of consolidation, we can say that every breakthrough is looking for space for the new consolidation. From a breakthrough point of view, every consolidation is to save energy for a new round of breakthrough.

The two are mutually causation and alternately, and the stock market will fluctuate forever.

From the point of view of consolidation and breakthroughs, it is very natural to derive the various uses of the Bollinger line.

(1) judge the market

When the upper and lower Bollinger line begins to contract, it indicates that the stock price moves into a consolidation state, which is suitable for high throwing and low suction.

When the distance between brin lines begins to expand, it shows that the stock price volatility is aggravating and may break through.

Another indication of consolidation and breakthroughs is that in the consolidation process, stock prices are generally located between the two lines of the Bollinger line, and in the breakthrough process, stock prices generally go outside the two lines of the Bollinger line.

Therefore, when the share price is passed back to the brin line outside the Bollinger line, the breakthrough will end and will enter the consolidation.

(2) the width between the upper and lower brin lines can be used as warning signals for changing the disk.

In the process of consolidation, the distance between brin lines is getting smaller and smaller. When the brin line's distance is about 5%, it shows that the market turbulence is too small. There is no profit margin in the short term speculation. If the brin bandwidth is above 10%, it shows that there is still a larger space for short-term shocks, and the possibility of breakthroughs is small.

During the breakthrough, when the line width of brin reached over 30%, it showed that there was a larger space for short-term shocks, and the market could stop at any time to start a new round.

(3) target position as high throwing and low suction during the consolidation process.

During the consolidation process, the stock price is mostly between the two Boolean lines in the middle, sometimes beyond the middle brin line, but generally does not exceed 1.7 times the brin line.

Therefore, when the strategy of high dropping and low suction is determined, the middle two Boolean lines can be taken as the target position with high dropping or low suction, or slightly relaxed, but no more than 1.7 times the brin line can be expected.

(4) capturing breakthroughs

When the market broke through the start of a rally, the stock price often went to 1.7 times the brin line.

But we should also observe the intensity of the breakthrough. An effective breakthrough should be a breakthrough of 1.7 times the share price. The brin line will reach a larger value and maintain two or three days. Otherwise, if it breaks through and returns very soon, it will be invalid.

The stock price is more than 1.7 times that the brin line will not stay long and will soon return to the 1.7 fold brin line.

Because the stock price is no more than 5% outside the 1.7 fold of the Bollinger line. Generally, it can happen only at the moment of breakthrough, and it will not run outside the 1.7 times brin line for a long time.

There are two ways to return stock prices to the brin line, or to stop or wait for the brin line to catch up, which corresponds to the process of supporting or pressing back after sorting.

(5) judge the strength of breaking the market.

In the breakthrough market, the stock price usually breaks through 1.7 times brin line in the moment of breaking through the consolidation interval. After breaking through the trend running stage, if the share price goes between the brin line and the 1.7 fold brin line, it shows that the trend is stronger; if the stock price runs around the original brin line, it shows that the trend is weaker.

(6) judging the level of stability in breaking through the market.

If the stock price approaches 1.7 times the brin line or hits the outside, it will mean that the market is going too fast, and there must be a pullback or a pause.

(7) as a support pressure line.

The optimization of the five lines in brin has support and pressure, especially in the middle three.

The middle one is the moving average, and its supporting pressure is obvious.

In addition, stock prices can often be supported or under pressure on the two brin line.

Brin bandwidth

The brin bandwidth is an index evolved from the brin line.

In discussing the brin line, we mentioned that the distance between the two lines on the brin line reflects the average concussion degree of the recent stock price. The wider the brin line is, the more intense the shock is, the smaller the distance is, the smaller the turbulence.

The magnitude of the average volatility indicates the nature of the next step.

If the scope of the shock is large, there will be more opportunities for short-term concussion. Many short term authors will naturally appear in the participants. Frequent entry and exit will cause stock price shocks to form a consolidation trend.

Conversely, if the amplitude is very small, the short line has no profit opportunities. If anyone wants to continue playing on this stock, it will break through the consolidation.

The width of the two lines between the Boolean lines is judged by the naked eye and the brin bandwidth index BBand is generated.

The brin bandwidth is used to draw the distance between the midline of the brin line to the upper rail or the lower rail as an index to draw a line, so that it is more convenient to use.

The brin bandwidth index in compass software is optimized.

In other softwares, brin bandwidth is always used with absolute width, while Compass Software gives the amplitude percentage, for example, the Bband index is 20, which indicates that the average amplitude of the stock is 20% in the near future.

At the same time, there are two coordinate lines in the map of the Bband index, one at 5, and the index below the line, indicating that the amplitude is too small in the near future. This situation generally does not exceed 35 days and will break through. Of course, it is necessary to use other indicators to decide whether to go up or down.

There is also a coordinate line at 30, which can only break through this line when it continues to rise. At this time, the accumulated short line energy is high, which often leads to callbacks quickly, forming a situation of shock finishing.