Fibonacci Ratios Gold Analysis and Trading Signals

Derived from the initial Bollinger bands.

The Bollinger Fibonacci ratios is a volatility based trading indicators but it does not use the standard deviations method/calculation to calculate the width of the lines instead it uses a smoothed ATR that is multiplied with Fibo ratios of 1.618, 2.618, & 4.236.

The smoothed lines that are multiplied with Fib ratios are then added or subtracted from the MA Moving Average.

This forms Three upper Fibo bands & Three lower Fibo bands

The middle band forms the basis of the market trend.

Bollinger Bands: Fibo Ratios Technical Indicator - How to Interpret Bollinger Bands Fibonacci Ratios Technical Indicator

Gold Analysis and Generating Signals

This indicator used to determine point of support and resistance for gold.

Lines below represent support points while those above are resistance zones.

Outermost bands provide the strongest resistance/support.

The inner most bands provide the least support/resistance.

The innermost band represents Fibo 38.2 % retracement level

The second band represents Fibonacci 50 percentage retracement level

The outermost band represents Fib 61.80 percent% retracement level

The indicator is used to determine points where the price might reverse. (Price Pull back Levels)

When price hits one of the lines and reverses then an entry or exit trade signal is generated.

However, it's always good to combine the signal with other confirmation indicators such as and like the Moving Average to confirm the trading signal as shown below.

Place Bollinger Band Fibonacci Ratios Indicator on Chart

Analysis in Gold Trading

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Fibonacci Ratios Gold Analysis and Trading Signals

Gold Analysis and Generating Signals