Bollinger Bands Gold Trading Strategies

• 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 and Gold Trend Reversals
• Bollinger Bands Gold Trading Strategy Summary

Bollinger Bands Gold Indicator Strategy

Bollinger Bands gold indicator acts as a measure of volatility. Bollinger Bands gold indicator is a gold price overlay indicator.

Bollinger Bands indicator consists of three lines or bands; the middle band (moving average), an upper band a lower band. These three bands will enclose the xauusd price and the xauusd price action will move within these three bollinger bands.

Bollinger Bands gold indicator forms upper and lower bands around a moving average. The default moving average for bollinger bands gold indicator is the 20-SMA. Bollinger Bands gold indicator use the concept of standard deviations to form their upper and lower Bands.

The example of Bollinger Bands gold indicator is shown below.

Bollinger Bands XAUUSD Indicator - How to Trade Gold with Bollinger Band Gold Trading 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 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.