Bollinger Bands Gold Trading Strategies
- How Bollinger Bands Works
- Bollinger Bands Market Volatility Anaysis
- 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 Trading Indicator Strategy
Bollinger Bands gold trading indicator acts as a measure of volatility. Bollinger Bands gold trading 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 gold price and the gold price action will move within these three bollinger bands.
Bollinger Bands gold trading indicator forms upper and lower bands around a moving average. The default moving average for bollinger bands gold trading indicator is the 20-SMA. Bollinger Bands gold trading indicator use the concept of standard deviations to form their upper and lower Bands.
The example of Bollinger Bands gold trading indicator is shown below.
Bollinger Bands Gold Trading Indicator - How To Trade Gold with Bollinger Band Gold Trading Strategy
Because standard deviation is a measure of gold trading price volatility and volatility of the gold trading market is dynamic, the gold trading bollinger bands keep adjusting their width. Higher gold trading price volatility means higher standard deviation and the more the bollinger bands widen. Low gold trading price volatility means the standard deviation is lower and the bollinger bands contract.
Bollinger Bands fore indicator use gold price action to give a large amount of gold trading price action movement information. The gold trading price information given by the this bollinger bands gold trading indicator includes:
- Periods of low volatility- consolidation phase of the Gold trading market.
- Periods of high volatility- extended trends, trending Gold trading markets.
- Support and resistance levels of the gold trading price.
- Buy and Sell points of the gold trading price.