Bollinger Bands Indicator and Silver Price Volatility

When price volatility is high; prices close far away from the moving average, the trading Bollinger Bands width increases to accommodate more possible price action movement that can fall within 95 % of the mean.

Bollinger bands silver indicator will widen as price volatility widens. This will show as bollinger band bulges around the price. When the trading bollinger bands widen like this it is a continuation silver trading pattern and price will continue moving in this direction. This is normally a continuation signal.

The Bollinger bands silver indicator example explained and shown below illustrates the Bollinger bulge.

High Silver Price Volatility - Silver Bollinger Bands Indicator - Bollinger Band Bulge

When price volatility is low: prices close closer toward the moving average, the width decreases to reduce the possible price action movement that can fall within 95 % of the mean.

When price volatility is low price will start to consolidate waiting for price to breakout. When the trading bollinger bands indicator is moving sideways it is best to stay on the sidelines and not to place any trades.

The Bollinger bands indicator example is illustrated below when the trading bollinger bands narrowed.

Low Silver Price Volatility - Silver Bollinger Bands Indicator - Bollinger Bands Squeeze