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