Calculation Method of BOLL Index, Standard Deviation and Complete Solution of Track Line

Among all kinds of technical indicators, the calculation method of BOLL indicator is more complicated. It introduces the concept of standard deviation in statistics, involving the calculation of middle rail line (MB), upper rail line (UP) and lower rail line (DN). Similar to other indicators, BOLL indicators are divided into daily BOLL, weekly BOLL, monthly BOLL, annual BOLL and minute BOLL according to different calculation periods. Among them, daily BOLL and weekly BOLL are more commonly used in stock market research and judgment. Although the values of different cycles are different, the basic calculation methods are consistent.ZehuiThe platform supports the viewing of BOLL indicators of various cycles, which is convenient for investors to conduct multi-cycle analysis. Taking the daily BOLL indicator as an example, its calculation method is as follows:

1. Calculation formula of daily BOLL indicator

The middle rail line is the N-day moving average, the upper rail line is the middle rail line plus double standard deviation, and the lower rail line is the middle rail line minus double standard deviation.

2. Calculation process of daily BOLL indicator

(1) Calculate MA: MA is equal to the sum of the closing prices for N days divided by N.

(2) Calculate the standard deviation MD: MD is equal to N days (the sum of the squares of the difference between the closing price C and the MA) divided by the square root of N.

(3) Calculate MB, UP, and DN lines: MB is MA for (N-1) days, UP = MB + 2 × MD, DN = MB-2 × MD.

In Zehui's market analysis system, the BOLL indicator is composed of four lines: the upper rail line UP, the middle rail line MB, the lower rail line DN and the price line. The upper rail line UP is represented by the yellow line, the middle rail line MB is represented by the white line, the lower rail line DN is represented by the purple line, and the price line is represented by the light blue US line. Similar to other technical indicators, investors do not need to calculate the BOLL indicator by themselves in actual combat, but understanding its calculation method and process can help them gain a deeper understanding of the essence of the indicator and lay the foundation for subsequent use.