What is the best parameter setting of bollinger bands?

The parameter of the Bollinger Band is generally (20.2) by default, and this 20 refers to the middle track, which is the so-called 20-day moving average, while the latter 2 is the so-called 2 standard deviations, so these two are the upper and lower tracks after the final calculation of the Bollinger Band.

Generally speaking, in the setting of bollinger band parameters, we need to make as many K lines as possible fall within the interval of bollinger band according to the actual situation, which is the premise. By setting such standards and parameters, the bollinger bands can be made most accurate.

Extended data:

Moving average (m a) is a technical index, which averages the securities prices (indexes) in a certain period through statistical analysis, and connects the averages at different times to form a MA to observe the changing trend of securities prices.

The moving average was put forward by Joseph E.Granville, a famous American investment expert, in the middle of 20th century.

The theory of moving average is one of the most widely used technical indicators, which helps traders to confirm the existing trend, judge the coming trend and find the trend that will be reversed if it is delayed excessively.

General characteristics

1) Track the trend. Pay attention to the price trend, follow this trend and don't give up easily.

2) stability. Because the change of the horse is not a one-day change, but a few days change. If a big change in one day is shared by several days, the change will become smaller and invisible.

3) hysteresis.

4) Help rise and fall.

5) dependence.

6) Characteristics of support line and pressure line.

There are many kinds of moving averages, but generally speaking, they can be divided into three types: short-term, medium-term and long-term. The short-term moving averages are mainly on the 5th and 10.

On the 5th, divide the sum of five days' numbers by five, find an average, mark it on the chart, and then calculate the latter by analogy, and then connect the daily averages to get the five-day average. Since the SSE usually has five trading days every week, the 5-day line is also called the weekly line.

Because the 5-day moving average fluctuates greatly, the image of the line is very irregular when the market fluctuates, and the trajectory cannot be found, so the 10 moving average is born. Taking 10 as the sample, this line is simple and easy to calculate, and it is the most widely used moving average for investors.

It can accurately reflect the change and trend of the average cost of stock price in the short term and can be used as the basis for short-term entry and exit.

The second category is the medium-term moving average. First, the monthly line, sampling on 24th, 25th or 26th. This line allows users to know the average change cost of the stock price in a month. For medium-term investment, it is efficient, especially before the stock market is quite clear, which can show the future direction of stock price in advance.

Next is the 30-day moving average, or in months, but the calculation is simpler than the former because it takes 30 days as the sample, and finally is the seasonal line, and the sampling is 72, 73 or 75 days. Because its fluctuation range is smoother than the short-term moving average, and its trajectory can be found, its sensitivity is higher than the long-term moving average, so its advantages are obvious.

The third category is the long-term moving average. The first is the semi-annual line, and the sampling date is 146 or 150 days. Because listed companies in Shanghai publish financial statements twice a year, directors, supervisors and some well-informed people of the company can often get first-hand information in this regard and speculate, so investors can get the benefit of riding in a sedan chair. However, due to strong speculation in Shanghai, investors pay attention to short-term spread income, so the effect is good.

The 200-day moving average was launched after Granvile devoted himself to researching and testing the moving average system, but it is not widely used in China. The annual sampling line of about 255 days is a reference for super-large households and speculators to operate stocks.