Bollinger Bands Gold Price Action in Ranging Gold Trading Markets
Bollinger Bands Gold Trading Indicator is also used to identify periods when a gold trading market gold trading trend is overextended. The guidelines below are considered when applying this gold trading indicator to a sideways gold trading trend.
Bollinger Bands Gold Trading Indicator is very important because it is used to give gold trading signals that a gold trading price breakout may be upcoming.
During a gold trading trending market these techniques do not hold, this only holds as long as Bollinger Bands are pointing sideways.
- If the gold trading market gold price touches the upper band it can be considered overextended on the upside - overbought.
- If the gold trading market gold price touches the lower band the gold trading 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 gold trading market.
- If gold trading price has bounced off the lower band crossed the center-line moving average then the upper band can be used a sell level.
- If gold trading 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 trading market the instances when the gold trading price hits the upper or lower bands can be used as profit targets for long/short gold trading trade positions.
Gold trades can be opened when the gold trading market hits the upper resistance level or lower support level. A stop loss gold trading order should be placed a few pips above or below depending on the gold trading trade opened, just in case the gold trading price action breaks out of the range within these Bollinger bands.