Bollinger Bands XAUUSD Indicator Bulge and Squeeze Technical Analysis
The XAUUSD Trading Bollinger Band are self adjusting which means the bands widen and narrow depending on gold trading price volatility.
Standard Deviation is the statistical measure of the gold trading price volatility used to calculate the widening or narrowing of the xauusd Bollinger bands. Standard deviation will be higher when prices are changing significantly and lower when the xauusd market prices are calmer.
- When gold price volatility is high the Bollinger Bands widen.
- When gold trading price volatility is low the Bollinger Bands narrows.
How to Trade Bollinger Bands Squeeze
Narrowing of xauusd Bollinger Bands is a sign of gold trading price consolidation and is known as Bollinger band squeeze.
When the Bollinger Bands indicator display narrow standard deviation it is usually a time of gold trading price consolidation, and it is a xauusd signal that there will be a gold trading price breakout and it shows xauusd traders are adjusting their trade positions for a new move. Also, the longer the gold trading prices stay within the narrow bands the greater the chance of a gold price break-out.
Bollinger Squeeze - The Bollinger Bands Squeeze - How to Trade Bollinger Bands Squeeze
How to Trade Bollinger Bands Bulge
The widening of Bollinger Bands is a sign of a gold price break-out and is known as Bollinger Band Bulge.
Bollinger Bands that are far apart can serve as a xauusd signal that a xauusd trend reversal is approaching. In the Bollinger bands xauusd indicator example shown below, the xauusd Bollinger bands get very wide as a result of high gold trading price volatility on the down swing. The xauusd trend reverses as gold trading prices reach an extreme level according to statistics and the theory of normal distribution. The "bulge" predicts the change to a gold trading downwards trend.
Bollinger Bulge - The Bollinger Bulge - How to Trade Bollinger Bands Bulge
