Continue the lecture tonight.

how to combine Bollinger Bands with other technical indicators

For example, when the KDJ indicator shows a golden cross signal and the indicator line
enters the overbought zone, the Bollinger Band indicator channel gradually widens, and the
stock price runs along the upper Bollinger Band indicator line, indicating short-term strength in
the stock price.

If the KDJ indicator shows a bearish crossover and the stock price candlestick chart returns
from outside the Bollinger Band indicator to below the upper band, it is a clear sell signal.
 Different trading strategies will inevitably choose different time frames. Typically, default
indicator settings are based on daily charts using Bollinger Bands. If you want to make medium to
long-term investments, you can consider using weekly charts instead of daily charts. For
short-term or ultra-short-term trading, you can consider replacing the daily chart with a
60-minute or 30-minute chart.
The default time parameters for most software are (20, 2), and there are several reasons for this:
First, the 20-day SMA is a relatively stable SMA, and setting it in the Bollinger Band center line
helps prevent excessive volatility in the Bollinger Band indicator.
However, if the SMA period is set too long, such as 30 days or 60 days, it may lead to the problem
of a slow response of the Bollinger Band.

Secondly, 2 standard deviations are the technical parameters associated with the 20-day
moving average. This Bollinger Bands parameter has a very clear goal, which is to cover as many
stock price candlesticks as possible with the smallest possible area.

The combination of the 20-day moving average and two standard deviations is a relatively ideal
choice. Therefore, if we want to adjust the technical parameters of the Bollinger Bands, we must
consider the degree of coverage of the Bollinger Bands on the stock price candlesticks. If the
coverage area does not reach 80%, the Bollinger Band indicator will be difficult to play its due
role.
Usually, if we want to shorten the analysis period of the mid-line, such as adjusting the 20-day
SMA to a 10-day SMA, we need to adjust two standard deviations to 1.5 standard deviations at
the same time. If we want to enlarge the analysis period of the mid-line, we also need to increase
the number of standard deviations.
The center line is a tracking line for medium-term trends. When the center line runs downward
at a low level and turns upward, it often means that the stock price will enter a medium-term
upward trend; when the center line runs upward at a high level and then turns downward, it
usually means that the stock price will enter a medium-term correction or downward trend.
 The upper band serves as a signal for the end of a stock price downtrend. When the stock price
is in a downtrend and the opening gradually widens, if the upper band no longer hits new highs
but turns downward, it means that the downtrend may be ending and we need to look for more
clear rebound signals.
Entering the upper band of the Bollinger Bands is a warning of a danger zone for stock prices.
When the stock price rises too fast, the upper band of the Bollinger Bands will definitely adjust
faster than the stock price, so these stock price candlesticks will appear above the upper band.
According to the design concept of the Bollinger Bands, most of the stock price candlesticks will
be located within the Bollinger Bands channel, so we can judge that the stock price will soon
retreat to the Bollinger Bands. In other words, the stock price needs a short-term downward
adjustment.
Certainly, at this time, the upper band is only a warning signal. If the stock price is still in an
upward trend, there may be a significant short-term rise. As long as there is no obvious sign of
adjustment in the stock price, do not sell the stocks too early.
The lower band serves as a signal for the end of a stock price uptrend. When the stock price is
in an uptrend and the opening gradually widens, if the lower band no longer hits new lows but
turns upward, it means that the uptrend of the stock price may end and we should sell some
stocks at the appropriate time.
Entering the lower band of the Bollinger Bands is a warning of an oversold zone for stock prices.
When the stock price falls too fast, the adjustment of the lower band of the Bollinger Bands will
definitely lag behind the stock price, so these stock price candlesticks will appear below the lower
band.
 According to the design of the Bollinger Bands, most of the stock price candlesticks will be
located within the Bollinger Bands channel, so we can assume that the stock price will soon
rebound to within the Bollinger Bands. In other words, stocks need a short-term upward
rebound.
Certainly, at this point in time, the lower limit is only a warning signal. If the share price is in a
downtrend, there is still a possibility of a sharp fall in the short term. As long as there are no clear
signs of a rebound in the share price, do not buy shares too early.
Formula for the Channel Width Indicator:
The main purpose of Bollinger Bands is to confirm the volatility of a stock's price by scaling the
Bollinger Bands. Investors must have an accurate idea of how the Bollinger **Bands will change.
The Channel Width Indicator is one such indicator and is calculated using the following
formula:
Channel width = (upper band - lower band) / middle line.
Channel width is also the extent of the rise and fall.

With this formula, can accurately understand the numerical changes of the Bollinger Bands, and
there are two specific patterns to judge:
1. Gradually widening channel width: When the stock's price volatility increases, the high and
low points of the price oscillation will gradually move away from each other, causing the Bollinger
Bands to widen. This suggests that a large upward or downward trend is imminent.
2. Gradually narrowing channel width: When the stock's price volatility decreases, the high and
low points of the price oscillation will gradually converge, causing the Bollinger Bands to narrow.
This indicates that the stock's price oscillation will gradually decrease, potentially leading to a
period of consolidation or significant uncertainty in future price trends.

The above is an explanation and usage of Bollinger Bands. You can set parameters in your own
watch system and then operate practically.
 Today's operation is based on a combination of news and technical analysis. I knew before the
market opened that one institution would sell stocks while another would buy them, and they
were conducting internal transactions. I observed that the technical analysis of this stock
matched my trading strategy, so I decided to have everyone close the positions during normal
trading hours.

Today's session is over. I would like to remind those members who have not kept up with the
progress to prepare their accounts and funds as soon as possible to catch up with the first step of
TPGS. Otherwise, you will miss the opportunity to apply for IPO allocation. Please remember that
the second step of TPGS (IPO allocation) is the focus of our plan.