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