Bollinger Bands XAUUSD Indicator and Gold Price Volatility

When xauusd price volatility is high; gold prices close far away from the moving average, the gold trading Bollinger Bands width increases to accommodate more possible xauusd price action movement that can fall within 95% of the mean.

Bollinger bands gold indicator will widen as xauusd price volatility widens. This will show as bollinger band bulges around the xauusd price. When the gold trading bollinger bands widen like this it is a continuation gold pattern and xauusd price will continue moving in this direction. This is normally a continuation gold signal.

The Bollinger bands gold indicator example illustrated and explained below illustrates the Bollinger bulge.

High Gold Price Volatility - Gold Bollinger Bands XAUUSD Indicator - Bollinger Bands Bulge

When xauusd price volatility is low; gold prices close closer towards the moving average, the width decreases to reduce the possible xauusd price action movement that can fall within 95% of the mean.

When xauusd price volatility is low xauusd price will start to consolidate waiting for xauusd price to breakout. When the gold trading bollinger bands indicator is moving sideways it is best to stay on the sidelines and not to place any xauusd trades.

The Bollinger bands indicator example is shown below when the gold trading bollinger bands narrowed.

Low Gold Price Volatility - Gold Bollinger Bands XAUUSD Indicator - Bollinger Bands Squeeze