Bollinger Band XAUUSD Indicator and Price Volatility
When price volatility is high; prices close far away from the moving average, the Bollinger Band width increases to accommodate more possible price action trading movement that can fall within 95 % of the mean.
Bollinger Band indicator will widen as price volatility widens. This will show as the bollinger bands bulge around the price. When the bollinger bands widen like this it's a continuation pattern & price will continue going in this direction. This is usually a continuation signal.
The Bollinger bands indicator illustration illustrated and explained below illustrates and shows the Bollinger bulge.
High Price Volatility - Bollinger Band XAUUSD Indicator - Bollinger Band Bulge
When price volatility is low: prices close closer toward the moving average, the width decreases to cap the possible price action movement which can fall within 95 % of the mean.
When price volatility is low price will start to consolidate waiting for the price to breakout. When the trading bollinger bands indicator is moving sideways it's best to stay on the sidelines and not to place and open any trades.
The Bollinger bands indicator examples is shown below when the bollinger bands narrowed.
Low Price Volatility - Bollinger Band XAUUSD Indicator - Bollinger Band Squeeze
Get More Courses & Guides:
- How to Add Moving Average XAUUSD Indicator in Trading Chart in MetaTrader 4 Software
- Learn Basic XAUUSD Trading Methods
- How to Trade Ascending Triangle Pattern in Gold
- How to Trade a New XAU USD Order in MT5 iPhone Trading App
- How to Add StopLoss XAU/USD Orders in MT4 Charts
- Awesome Oscillator Strategies Buy and Sell Signal
- List of Best Swing Indicator MetaTrader 4 Indicators
- Understanding What a XAU USD Chart Is and Interpreting XAUUSD with a XAUUSD Chart
- How Do You Trade the Difference between Gold Stop Entry Gold Order and Stop Loss XAU USD Order?
- Best Bollinger Band for 5 Min Chart XAU USD
