Bollinger Bands XAUUSD Strategies
- How Bollinger Bands Works
- Bollinger Bands Market Volatility Analysis
- Bollinger Bands Bulge and Squeeze
- Bollinger Bands XAUUSD Price Action in Trends
- Bollinger Bands XAUUSD Price Action in Range
- Bollinger Bands & XAUUSD Trend Reversals
- Bollinger Bands XAUUSD Strategy Summary
Bollinger Bands Gold Technical Indicator Strategy
Bollinger Bands indicator acts as a measure of volatility. Bollinger Bands indicator is a gold price overlay indicator.
Bollinger Bands indicator consists of 3 lines or bands: the middle band (moving average), an upper band a lower band. These three bands will enclose the gold price & the gold price action will move within these 3 bollinger bands.
Bollinger Bands indicator forms upper & lower bands around a moving average. The default moving average for bollinger bands xauusd indicator is the 20-SMA. Bollinger Band xauusd indicator use the concept of standard deviations to form their upper and lower Bands.
The example of Bollinger Bands indicator is shown below.
Bollinger Bands Gold Indicator - How to Trade XAUUSD Trading with Bollinger Band XAUUSD Strategy
Because standard deviation is a measure of gold price volatility and volatility of the xauusd market is dynamic, the xauusd bollinger bands keep adjusting their width. Higher gold price volatility means higher standard deviation and the more the bollinger bands widen. Low gold price volatility means the standard deviation is lower and the bollinger bands contract.
Bollinger Bands forex indicator use gold price action to give a large amount of gold price action movement information. The gold price information given by the this bollinger bands xauusd indicator includes:
- Periods of low volatility- consolidation phase of the gold trading market.
- Periods of high volatility - extended trends, trending xauusd markets.
- Support and resistance levels of the gold price.
- Buy and Sell points of the gold price.
