BB-bollingerbands

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

Here I used $Apple(AAPL.US)$ Let's explain:
pursuant @Meta MooProvide a detailed description:
1. Are stocks “cheap” or “expensive”?
Don't blindly short sell when the price is high, as the price may stay “cheap” or “expensive” for a long time.

We can try using it in combination with other technical indicators; here I'm trying to analyze it in combination with the MACD indicator.

The BB red arrow in the image above shows that the stock price is “expensive”, but at the same time, the MACD is on an upward trend, so don't rush to press the trade button.

2. Is 95% of the stock price fluctuating within BB?
Stocks fluctuate within BB for a long time and break through BB very few times. Through the chart below, you can see how many times the stock price has broken through the Bollinger Bands.

3. Excess and excessive levels
When the stock price reaches the upper or lower Bollinger band limit, it is considered overbought or oversold, but it is likely to remain in its current state for a long time, and we can also use other indicators to further confirm the current trend.

When the Bollinger line is overbought for a while, but the MACD shows a dead cross, this is a signal to sell.

4. How do we determine the direction of the outbreak
Volatility tends to expand when the Bollinger Bands contract. The longer the contraction, the more intense the subsequent outburst.

BB begins to expand after shrinking

BB is a trading tool used to determine entry and exit points for transactions. Bands are usually used to determine overbought and oversold situations.
Trading only using bands is a risk strategy, as this indicator focuses on price and volatility and ignores much other relevant information, and should be used in conjunction with other indicators.

This explanation goes a bit deeper:
https://www.moomoo.com/hans/community/feed/108116765179909?lang_code=0
My personal opinion is that 95% of stock prices fluctuate between Bollinger bands. Would I have a 95% chance of making a profit if I buy stocks at the bottom of the Bollinger bands and sell at the top?

UPDATE:
Actually, I just closed a trade using Bollinger band analysis. $Honeywell(HON.US)$
The reason I sold it:
1. At present, the stock price has reached the high point brought by Bollinger, and there is a high possibility that it will fall, so I decided to close the trade.
2. I observed that when the stock price reached the high point of the Bollinger band, the MACD was in a gold cross. The current trend may be rising, but the DMI indicator is still on a downward trend, and the MA indicator stock price is still below the annual MA250.
3. Considering many factors (interest rate hike in May), I decided to leave the market for a while and wait until the stock price falls to the bottom of the Bollinger band again and I will consider buying.
👉https://www.moomoo.com/hans/community/feed/108170412490758?lang_code=0

Observed the next day, the stock price certainly fell after hitting the top of the Bollinger band. The share price is now close to the bottom of the Bollinger band due to many factors, but this is probably not an opportunity to enter the market. If I were to just analyze a technical indicator of the Bollinger band, I might buy stocks at the bottom of the Bollinger band, but we should not only rely on one technical indicator; we should use more technical indicators to analyze it. Currently, the MACD is changing from an upward signal to a downward signal. According to the news, on May 4, the Federal Reserve will announce that interest rate hikes have been scaled down, and the market may fluctuate at that time.