BBI indicator is so practical! The main force fears that you will use it simply but accurately.
Many people have had this confusion: obviously, the K-line looks good, but when you buy, you end up trapped; feeling that it is going to drop, you hurry to sell, only to sell at the lowest point. It’s not that you have bad luck, nor is it that the main force is specifically targeting you, but rather that you have not found the 'core password' for analyzing the market.
Everyone usually keeps switching between the 5-day and 10-day moving averages, yet treats the BBI indicator hidden in the trading software as a decoration—this simple tool, overlooked by 95% of retail investors, happens to be the 'mirror' that the main force cannot escape from when manipulating the market.
The main force can manipulate K-line shapes and create fake trading volumes to deceive retail investors into taking over, but they cannot deceive 'market average cost.' The essence of the BBI indicator is the 'collection' of multi-cycle costs; the massive capital of the main force leaves traces on BBI at every step of accumulation, ascent, and unloading. Today, I’ll explain BBI's adjustment methods, four core usages, and three pitfalls in plain language, combined with actual market scenarios, so that whether you are a newbie just entering the market or an experienced investor, you can use it right after reading, making the main force’s movements basically 'transparent' to you.
1. First understand: What exactly is BBI? Why does the main force fear it?
Many people feel that 'indicators' are complex, but in fact, BBI is simple enough that no formula calculations are needed. It simply takes the average of the four commonly used moving averages: 5-day, 10-day, 20-day, and 60-day, and plots them as a line, also called the 'bull-bear indicator.' You can understand it as 'the average holding cost line of all market participants'—whether retail or main force, everyone's buying and selling leaves a mark on this cost line.
Why can the main force not escape BBI? The core reason is simple: the main force's capital volume is too large, and entering and exiting the market cannot be done quietly. Retail investors buying and selling hundreds or thousands of shares is like throwing a small stone into a lake, creating no waves; but the main force needs to absorb tens of billions or even hundreds of billions of chips to build positions and must support the stock price upward during the ascent while selling a large number of stocks during unloading. These actions will inevitably change the relationship between stock prices and BBI.
To put it simply: BBI is like a 'cost water level line.' When the stock price is above BBI, it indicates that most people (including the main force) are making money, and the market is in a bullish trend, with little resistance to the main force's ascent; when the stock price is below BBI, it indicates that most people are trapped, and the market is in a bearish trend, making it extremely difficult for the main force to raise prices without first helping those trapped to break even. No matter how the main force disguises itself, it cannot escape the core of 'they also want to make money,' and BBI precisely targets this critical point.
According to recent market data statistics, BBI indicator signals are 3-5 trading days earlier than commonly used indicators like MACD and KDJ, capable of exposing the main force's 'disguised actions' in advance. For instance, if the main force wants to pretend to raise prices to lure in more buyers, the K-line may make new highs, but if BBI does not follow, that is a clear flaw; if the main force wants to smash the market to wash out, the stock price may break below the moving average, but if BBI does not follow down, it indicates only short-term fluctuations, not a real breakdown.
2. Call out BBI in 30 seconds; it is applicable to all trading software.
Don’t think of adjusting indicators as a technical task; in fact, whether you use Tonghuashun, Dongfang Fortune, Tongdaxin, or other trading software, you can definitely get it done within 30 seconds with just three steps, and newbies can easily learn it at a glance:
1. Open the individual stock K-line chart: randomly choose a stock, the default is the daily K-line interface (beginners should first look at daily K, don't jump straight to 15-minute or 30-minute short-term charts, as it is easy to be deceived by the main force).
2. Call out the indicator settings: Right-click on a blank area of the K-line chart, a menu will pop up, find 'indicator settings,' 'superimpose indicators,' or 'add indicators' (the names may vary slightly between different software but all contain the word 'indicator,' making them easy to find).
3. Find and add BBI: In the pop-up indicator list, look for 'trend indicators,' where you will see 'BBI.' Click 'add' and then 'confirm,' and a yellow or white line will appear on the K-line chart, which is BBI.
If you find it troublesome to find the menu, there is an even simpler method: just type 'BBI' on the keyboard and hit enter, the system will automatically call out the indicator faster than finding the menu. Here’s a reminder: after calling it out, don’t change the parameters randomly! The default 5-day, 10-day, 20-day, and 60-day parameters have been verified by the market over a long period and are the most suitable for actual market conditions. Changing them may affect accuracy.
After calling out BBI, you can randomly look at several stocks, such as those that have recently risen well, to see if most of the time they operate above BBI; those that have been continuously declining, do they seem to be pressed down by BBI. By observing a few more, you will intuitively feel the 'power' of BBI.
3. Core Usage 1: Look at the position + volume reduction retracement, uncover the main force's accumulation.
The main force likes to 'act humble' during accumulation, either deliberately smashing prices to make you think the stock price will drop significantly, scaring you into cutting losses; or horizontally consolidating, making you unable to bear the loneliness and actively give up your chips. But no matter how the main force disguises itself, BBI can easily pierce through its accumulation actions.
The core signal of the main force's accumulation is: breaking BBI without deep decline, volume reduction retracement and then standing back above. There are three specific judgment criteria that must be met simultaneously for the signal to be reliable:
1. Stock price first breaks below BBI, but the decline does not exceed 5%: when the main force smashes the market to wash out, they will not really drop the stock price too low, otherwise, other institutions will take the opportunity to bottom fish, so the decline is generally controlled within 5%. Moreover, the break is a 'volume reduction drop'—the trading volume on that day is more than 30% less than the previous day, indicating that no one is truly willing to sell; it is the main force's 'left hand dumping into the right hand.'
2. Stand back above BBI within 3 days: after the stock price breaks below BBI and does not continue to drop, it slowly rises back and stands again above BBI. At this time, the trading volume will moderately increase, 20%-40% more than during the decline, indicating that the main force has started to secretly absorb shares, and the previous smashing was just an illusion.
3. BBI is flat or slightly upward: this is the most critical point! If BBI continues to drop, it indicates that the overall trend is still poor, and the stock price rebound is merely a short-term fluctuation; only when BBI is flat or slightly upward does it indicate that the main force is supporting the bottom, and the market's average cost is rising, making the accumulation signal genuine.
Let me give you a real case: in the second half of 2024, there was a stock in the new energy sector that dropped from around 18 yuan to 15 yuan, breaking BBI, but the decline was only 4.2%, and the trading volume that day was 35% less than the previous day, which is considered a volume reduction break. After two days, the stock price slowly rebounded, standing back above BBI, and the trading volume was 30% more than during the decline, while BBI had been flat for half a month. This is a typical main force accumulation signal, and in the following month, this stock rose from 15 yuan to 17.8 yuan, a rise of 18.7%.
Practical technique: When you see these three conditions come together, do not rush to buy; wait for the stock price to retrace to BBI again, which is a low absorption opportunity. For instance, if the stock price stands back at BBI and then slightly drops to near BBI but does not break below, and the trading volume continues to reduce, this is the time to buy, keeping costs low and risks small.
According to recent market data statistics, stocks that show such accumulation signals have a 67.6% probability of starting an ascent within the following month, with an average rise of 14.7%; while those that break below BBI and then drop significantly or do not stand back above BBI within 3 days, 83% are real breakdowns, and there is no main force accumulation, so stay away.
4. Core Usage 2: Look at support + trend, follow the main force's ascent.
What does the main force fear the most during an ascent? They fear retail investors getting off the train midway, causing resistance to the ascent to increase. Therefore, the main force uses BBI as a 'natural handrail,' allowing the stock price to rise slowly along BBI—neither letting it rise too quickly to scare off retail investors nor letting it fall too much to trigger panic. At this time, the core of catching the ascent is to follow the support and trend of BBI, avoiding chasing highs and exiting early.
The core signal of the main force's ascent is: BBI upward slope, stock price stabilizing at BBI without breaking below. There are three specific judgment criteria:
1. BBI is upward sloping: During the ascent period, BBI does not need to be too steep, as long as it is clear that it is moving upward, indicating that the main force is continuously accumulating positions, and the market's average cost is continuously rising, improving the trend. According to statistics, during the ascent period of bull stocks in recent years, the average slope of BBI is around 15°, and if it is too steep (exceeding 30°), it is likely to pull back. For instance, some stocks experience consecutive price limits, with BBI steep as if standing upright; this type of market is hard to sustain and likely to pull back after a spike.
2. Each time the stock price adjusts, it does not break below BBI: even if it occasionally breaks below, it can pull back on the same day (also known as 'false breakdown'), and the trading volume is particularly low when it breaks. This indicates that retail investors are unwilling to sell, and the main force cannot wash out the chips, so they can only continue to push the price up. For example, there was a stock in the consumer sector that, in early 2025, during its ascent, retraced to near BBI four times, each time not breaking below, and during the retracement, the trading volume was less than the previous day, making each retracement a buying opportunity.
3. Trading volume and BBI synchronize to increase: BBI rises, and trading volume gradually increases rather than suddenly exploding. Sudden volume increases may indicate that the main force is raising prices to unload, for example, if the stock price suddenly rises more than 5%, and the trading volume is more than double the previous day, this is likely the main force selling chips; while moderate volume increases mean daily trading volume is 10%-20% more than the previous day, indicating that the main force is steadily accumulating positions, and the rise is genuine.
Practical technique: During the ascent phase, there is no need to rush to sell; as long as the stock price does not break below BBI, hold onto it; once the stock price breaks below BBI and does not recover on the same day, while the trading volume increases (more than 50% more than the previous day), sell quickly—this is the signal that the main force is starting to run. For instance, in 2025, there was a semiconductor stock that rose for 2 months, with the stock price continuously rising along BBI, but then one day the stock price broke below BBI and did not recover that day, with trading volume more than 60% higher than the previous day. After half a month, the stock price fell from 28 yuan to 23 yuan; if sold in time, most profits could be preserved.
By following this method, you can capture most of the upward movement. According to statistics, investors who buy following the 'BBI upward + stock price stabilizing at BBI' strategy can average a 70% capture of the upward movement; while those who chase high often only capture 20% before being washed out by the main force, and may even get stuck at the top.
5. Core Usage 3: Look at divergence + volume, avoid main force unloading.
When the main force unloads, they are best at 'painting beautiful scenery'; the stock price may still be making new highs, and the K-line looks good, but in fact, the main force has already been secretly selling chips. At this time, the 'divergence signal' of BBI is your 'lifeline' for escaping the peak early.
The so-called divergence means that the trends of stock price and BBI are different. When the stock price is rising, BBI is falling, indicating that the stock price increase is false, and the main force is unloading. There are two types of divergence signals, with the top divergence being the most dangerous unloading signal.
1. Top divergence (core unloading signal): the stock price creates a new high, but BBI does not follow to make a new high, instead starting to decline. For example, if the stock price rises from 10 yuan to 12 yuan, creating a recent new high, but BBI rises from 9.5 yuan to 10 yuan and then drops to 9.8 yuan, this is a clear top divergence. It’s like running; the stock price is 'surface speed,' while BBI is 'actual stamina'; it appears to be running fast, but stamina can’t keep up, and it will eventually stop.
2. Volume-price divergence + top divergence (double confirmation): If there is a top divergence while the trading volume is also shrinking, it is a 100% unloading signal. For instance, if the stock price rises by 3%, creating a new high, but the trading volume is 20% less than the previous day, and BBI does not make a new high, it indicates that no one is willing to take over, and the main force can only raise the stock price themselves, preparing to unload.
Let me give you a real example: in 2024, a stock in the artificial intelligence sector rose from 25 yuan to 32 yuan, creating a new high, but BBI only rose to 30 yuan and then started to decline, while the trading volume was 25% less than the previous day. This is a case of top divergence + volume-price divergence. After a few days, the stock price began to fall, and within half a month, it dropped to 27 yuan. If not sold in time, the previously earned profits would have been largely lost.
According to recent market data statistics, 82% of top unloading signals have BBI divergence, which is 2-3 days earlier than the K-line peak. This means that as long as you can understand BBI divergence, you can escape the peak earlier than other retail investors, preserving 10%-15% of your profits.
Practical technique: Once you see the top divergence signal 'stock price new high + BBI not new high,' start reducing positions by 50%; if trading volume also shrinks, reduce positions by 80% the next trading day; if the stock price directly breaks through BBI that day, clear your positions without hesitation. Many retail investors miss the best opportunity to escape the peak by holding on with the mindset of 'just a little more and I’ll sell.'
6. Core Usage 4: BBI + trading volume resonance, enhance signal accuracy.
Using BBI alone is useful, but if combined with trading volume, the signal will be more accurate and can avoid many false signals. This is because BBI reflects costs, while trading volume reflects capital movements; combining both allows for a clearer understanding of the main force's true intentions.
Here, I will share three 'BBI + trading volume' resonance signals, which have a high accuracy rate in practice:
1. Accumulation resonance: stock price volume reduction breaks BBI (decline ≤5%) + stands back above BBI within 3 days + volume expands ≥30% when standing back. This signal indicates that the main force has smashed the market to wash out positions and has started actively absorbing shares, with clear accumulation intentions and a high probability of subsequent rise.
2. Ascending resonance: BBI upward slope + stock price retraces without breaking BBI + trading volume moderately increases (daily increase of 10%-20%). This signal indicates that the main force is steadily accumulating positions, and the upward trend is stable, allowing for comfortable holding.
3. Unloading resonance: stock price new high + BBI not new high (top divergence) + trading volume shrinks by ≥20%. This signal indicates that the main force is secretly unloading, and the stock price rise lacks capital support, so immediate reduction or clearing is necessary.
For example, in the first half of 2025, a stock in the pharmaceutical sector showed an accumulation resonance signal: the stock price volume reduction broke BBI, with a decline of 3.8%, and three days later stood back above BBI, with trading volume 35% more than during the decline. After that, this stock started to rise, during which many resonance signals appeared, and the stock price rose from 16 yuan to 24 yuan, a rise of 50%. Later, it showed an unloading resonance signal: the stock price created a new high of 24 yuan, but BBI did not make a new high, and the trading volume was 22% less than the previous day. After that, the stock price began to decline; if sold in time, it could secure a 50% profit.
Why combine with trading volume? Because the main force can fake the K-line, but it is hard to fake the trading volume. For example, if the main force wants to pretend to accumulate positions, they may allow the stock price to return to BBI, but the trading volume will not expand, indicating that no one is really buying; if the main force wants to pretend to raise prices, the stock price may rise, but the trading volume shrinks, indicating that no one is taking over, and it’s all a show by the main force. Only when both BBI and trading volume meet the conditions can the signal be real.
7. Pitfall reminders: These three erroneous usages have been experienced by 95% of retail investors.
Although BBI is useful, using it incorrectly can be worse than not using it at all. According to market statistics, among retail investor loss cases, 38% are due to incorrect use of BBI, and these three pitfalls should definitely be avoided:
1. Don't use BBI in volatile markets—it will lead to back-and-forth losses.
If the stock price keeps jumping around above and below BBI, one day above, one day below, and the range of fluctuation around BBI does not exceed 5% over the past 20 days, this indicates a volatile market. In a volatile market, the signals from BBI are not accurate. For example, if you buy when the stock price stands back at BBI, but the next day it breaks below BBI, and after you sell, the stock price stands back at BBI again, you will suffer repeated losses, operating leads to greater losses. The win rate of using BBI for trading in a volatile market is only 41%, not much better than guessing.
Response method: In a volatile market, directly turn off BBI and do not use it for trading. Wait until the stock price breaks through the volatile range and BBI starts to slope upward significantly before using BBI for judgment.
2. Don't use short-term cycles to look at BBI—easy to be deceived by the main force.
Some people think they can make quick money by looking at BBI on 15-minute or 30-minute charts; this is a serious misunderstanding. The main force is most adept at 'drawing BBI' in short-term cycles, such as creating a false support in the 15-minute chart, allowing the stock price to return to BBI, tricking you into buying, and then immediately dumping, causing you to be trapped.
The core advantage of BBI lies in 'medium to long-term costs'; it is essential to look at the daily K-line or weekly K-line BBI for a higher win rate. Data shows that the accuracy rate of weekly K-line BBI signals reaches 83%, while the 15-minute line only has 52%.
Response method: Newbies should only look at the daily K-line BBI, while experienced users can combine it with the weekly K-line BBI, and absolutely do not use the short-term cycle BBI.
3. Don't just look at BBI without considering the overall market and sectors—signals may be distorted.
BBI reflects the cost of individual stocks, but the trend of individual stocks is inseparable from the influence of the overall market and sectors. For example, if the overall market continues to decline and the sector is in a consolidation period, even if individual stocks show a BBI accumulation signal, they may continue to fall due to the overall market dragging them down; conversely, if the overall market is rising and the sector is hot, even if the BBI signal for individual stocks is not obvious, they may rise accordingly.
Response method: When analyzing individual stocks with BBI, first check whether the overall market is in a bullish trend (the market index is above BBI), and then check whether the sector is a recent hotspot. Only when both conditions are met is the individual stock's BBI signal more reliable; if both the overall market and sectors are declining, even if the individual stock shows a BBI buy signal, it is better to observe and not act hastily.
8. Practical Case: Use BBI to completely track a stock's rise and fall.
To help everyone better understand the usage of BBI, I will provide a complete follow-up on a stock's trend, observing how BBI issues accumulation, ascent, and unloading signals step by step:
This stock is a consumer stock, and we will begin tracking it from October 2024:
1. Accumulation phase (mid-October to mid-November 2024): The stock price drops from 20 yuan to 18 yuan, breaking BBI but with only a 4% decline, and it is a volume reduction drop (trading volume is 32% less than the previous day). Three days later, the stock price returns to above BBI, and the trading volume is 35% higher than during the decline, while BBI has been flat for 10 days, which is a clear accumulation signal. After that, the stock price oscillates near BBI, and every time it retraces to BBI, it does not break below, presenting a low absorption opportunity.
2. Ascent phase (late November 2024 to late January 2025): BBI begins to slope upward at an angle of about 12°, and the stock price slowly rises along BBI. During this time, there were four retracements to BBI, none of which broke below, and during each retracement, the trading volume shrank, while the trading volume during the ascent moderately increased, indicating a rise signal. During this period, the stock price rose from 18 yuan to 26 yuan, a rise of 44%. As long as you follow BBI, you can capture the full rise.
3. Unloading phase (late January to early February 2025): The stock price rises to 26.5 yuan, creating a new high, but BBI only rises to 25 yuan and then starts to decline, showing a top divergence. Meanwhile, the trading volume is 23% less than the previous day, indicating a divergence in volume and price, which is an unloading signal. Afterward, the stock price breaks below BBI and does not recover on the same day, with trading volume 55% higher than the previous day, confirming unloading. At this point, clearing is necessary to preserve most of the profits.
4. Decline phase (after mid-February 2025): After the stock price breaks below BBI, BBI starts to slope down, and the stock price continues to operate below BBI, with every rebound to the vicinity of BBI being pressed down; at this time, you absolutely cannot buy to avoid being trapped.
From this case, it can be seen that the BBI signal runs through the entire cycle of stock price rise and fall, from accumulation to ascent, and then to unloading, providing clear prompts. As long as you follow these signals, you can avoid the traps of the main force and earn the profits you deserve.
9. Final summary: The core logic of BBI is just four sentences.
In fact, the usage of BBI is not complicated at all; the core logic can be summarized in four sentences, memorizing them will allow you to use it:
1. When the stock price is above BBI, and BBI is upward, it is a bullish market; buy on pullbacks.
2. When the stock price is below BBI and BBI slopes down, it is a bearish market; sell on rebounds.
3. Stock price makes new highs, but BBI does not make new highs, which is a top divergence; quickly reduce positions.
4. Volume reduction breaking BBI, standing back within 3 days, and BBI flattening is a signal for accumulation, warranting close attention.
Many retail investors find stock trading difficult because they have learned too many complex indicators and strategies, thus neglecting the most essential aspect—cost. No matter how the main force operates, the ultimate goal is to make money, and BBI just happens to capture the core of 'cost,' allowing it to accurately expose the intentions of the main force.