Bollinger Bands Gold Price Action in Ranging Gold Trading Markets

Bollinger Bands Gold Indicator is also used to identify periods when a gold market trend is overextended. The guidelines below are considered when applying this gold indicator to a sideways xauusd trend.

Bollinger Bands Gold Indicator is very important because it is used to give gold trading signals that a gold price breakout may be upcoming.

During a gold trending market these techniques do not hold, this only holds as long as Bollinger Bands are pointing sideways.

• If the xauusd price touches the upper band it can be considered overextended on the upside - overbought.
• If the xauusd price touches the lower band the xauusd price can be considered overextended on the bottom side - oversold.

One of the uses of Gold Bollinger Bands indicator is to use the above overbought and oversold gold trading guidelines to establish buy and sell targets during a ranging xauusd market.

• If xauusd price has bounced off the lower band crossed the center-line moving average then the upper band can be used a sell level.
• If xauusd price bounces down off the upper band crosses below the center moving average the lower band can be used as a buy level.

Trading Bollinger Bands in Ranging Gold Trading Markets - Bollinger Bands Gold Trading Strategy

In the above ranging gold market the instances when the xauusd price hits the upper or lower bands can be used as profit targets for long/short gold trade positions.

Gold trades can be opened when the xauusd market hits the upper resistance level or lower support level. A stop loss gold order should be placed a few pips above or below depending on the gold trade opened, just in case the xauusd price action breaks out of the range within these Bollinger bands.