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