The Bollinger Bands indicator of EMPFSZH Finance determines the position of the upper and lower bands in the following way:
The Bollinger Bands indicator consists of three lines: the upper, middle, and lower bands. Among them, the upper and middle rails are generated by the moving level, and the lower rails are calculated on the basis of the upper and middle rails.
Specifically, the Bollinger Bands indicator is calculated as follows:
Calculate the moving level (MA): First, you need to calculate the average value over a certain time period (e.g. 20 days). This average is a weighted average of all historical **, and the weight is how close each ** is to the current date.
Calculating the Middle Rail (Mid): The Middle Rail is the average of two moving flats. Specifically, the mid-band is the average of the 20-day simple moving average** (SMA) and the 20-day weighted moving average** (WMA).
Calculate the upper and lower bands: The upper and lower bands are calculated from the middle and standard deviations. The standard deviation is the average of the sum of the squares of all ** distances from the mid-band and re-squared. The upper band is the middle band plus a certain multiple of the standard deviation, and the lower band is the middle band minus a certain multiple of the standard deviation.
With the above steps, you can determine the position of the upper, middle and lower bands of the Bollinger Bands indicator. The Bollinger Bands indicator can be used to analyze the volatility range and trend of ***, and investors can make corresponding trading decisions based on these indicators.