Bollinger Bands Gold Indicator & XAUUSD Price Volatility
When gold price volatility is high; gold prices close far away from the moving average, the xauusd Bollinger Bands width increases to accommodate more possible gold price action movement which can fall within 95% of the mean.
Bollinger bands xauusd indicator will widen as gold price volatility widens. This will show as bollinger band bulges around the gold price. When the xauusd bollinger bands widen like this it is a continuation xauusd pattern and gold price will continue moving in this direction. This is normally a continuation gold trading signal.
The Bollinger bands xauusd indicator example shown below illustrates the Bollinger bulge.
High XAUUSD Price Volatility - Gold Trading Bollinger Bands Indicator - Bollinger Bands Bulge
When gold price volatility is low: gold prices close closer toward the moving average, the width decreases to reduce the possible gold price action movement which can fall within 95% of the mean.
When gold price volatility is low gold price will start to consolidate waiting for gold price to breakout. When the xauusd bollinger bands indicator is moving sideways it is best to stay on the sidelines and not to place any gold trades.
The Bollinger bands indicator example is illustrated below when the xauusd bollinger bands narrowed.
Low XAUUSD Price Volatility - Gold Trading Bollinger Bands Indicator - Bollinger Bands Squeeze
