BB-BollingerBands

Let's get straight to the point, according to @Meta Mooprovided relevant content for practical exercises
https://www.moomoo.com/hans/community/feed/108111210938373?lang_code=0

Here I used $Apple (AAPL.US)$ for commentary:
According to @Meta MooProvide a detailed description:
Are stocks "cheap" or "expensive"?
When the price is at a high level, do not short sell blindly, because the price may remain "cheap" or "expensive" for a long time.

We can try to use other technical indicators together. Here I try to combine the MACD indicator for analysis.

The red arrows in the BB chart indicate the stock price is "expensive", but at the same time the MACD is in an upward trend, so do not rush to press the trade button.

2. Does 95% of the stock price fluctuate within the BB?
The stock price fluctuates within the BB for a long time and breaks through the BB very few times. From the chart below, you can see the number of times the stock price breaks through the Bollinger Bands is very small.

3. Excess and Over-standard Levels
When the stock price reaches the upper or lower segment of the Bollinger Bands, it is considered overbought or oversold, but it may remain in the current state for a long time. We can use other indicators to further confirm the current trend at the same time.

When the Bollinger Bands are overbought for a period of time, but the MACD shows a dead cross, it is a sell signal.

4. How do we determine the direction of the outbreak?
When the Bollinger Bands contract, the volatility tends to expand. The longer the contraction, the stronger the subsequent outbreak.

BB expands after contraction.

BB is a trading tool used to determine entry and exit points. It is often used to identify overbought and oversold conditions.
Trading based solely on BB is a risky strategy because this indicator focuses on price and volatility, while ignoring many other relevant information. It should be used in conjunction with other indicators.

This commentary provides more in-depth explanation:
https://www.moomoo.com/hans/community/feed/108116765179909?lang_code=0
In my personal opinion, I believe that the stock price fluctuates between the Bollinger Bands about 95% of the time. Is there a 95% chance of making a profit if I buy stocks at the bottom of the Bollinger Bands and sell at the top?

Update:
In actual practice, I just finished analyzing a trade using the Bollinger Bands. $Honeywell (HON.US)$
Reasons for selling:
1. The stock price has reached the upper band of the Bollinger Bands, indicating a high possibility of a downturn. Therefore, I have decided to end the trade.
2. Upon observation, when the stock price reaches the upper band of the Bollinger Bands, the MACD is in a golden cross, indicating a potential uptrend. However, the DMI indicator is still in a downtrend, and the MA indicator shows that the stock price is still below the annual MA250.
3. Considering various factors (such as potential interest rate hikes in May), I have decided to temporarily step aside and wait for the stock price to fall to the bottom of the Bollinger Bands before considering buying.
👉https://www.moomoo.com/hans/community/feed/108170412490758?lang_code=0

The next day, the stock price did indeed fall after touching the upper band of the Bollinger Band. Considering various factors, the stock price is now close to the bottom of the Bollinger Band, but it may not be an entry opportunity at the moment. If I only observe the Bollinger Band as a technical indicator, I may buy stocks at the bottom of the Bollinger Band, but we should not rely on just one technical indicator. We should use various technical indicators to analyze. Currently, the MACD has turned from an uptrend signal to a downtrend signal. On the news side, the Fed will announce the interest rate hike and balance sheet reduction plan on May 4th, which may cause market volatility.