Bollinger Bands Gold Indicator Bulge and Squeeze Technical Analysis

The Gold Bollinger Bands are self adjusting which means the bands widen and narrow depending on xauusd price volatility.

Standard Deviation is the statistical measure of the xauusd price volatility used to calculate the widening or narrowing of the gold trading Bollinger bands. Standard deviation will be higher when gold prices are changing significantly and lower when the xauusd market gold prices are calmer.

• When xauusd price volatility is high the Bollinger Bands widen.
• When xauusd price volatility is low the Bollinger Bands narrows.

How to XAUUSD Trade Bollinger Bands Squeeze

Narrowing of gold trading Bollinger Bands is a sign of xauusd price consolidation and is known as the Bollinger band squeeze.

When the Bollinger Bands gold indicator display narrow standard deviation it is usually a time of xauusd price consolidation, and it is a gold signal that there will be a gold price breakout and it shows gold traders are adjusting their trade positions for a new move. Also, the longer the gold prices stay within the narrow bands the greater the chance of a gold price breakout.

Bollinger Squeeze - The Bollinger Bands Squeeze - How to Gold Trade Bollinger Bands Squeeze

How to XAUUSD Trade Bollinger Bands Bulge

The widening of Bollinger Bands is a sign of a gold price breakout and is known as the Bollinger Bands Bulge.

Bollinger Bands that are far apart can serve as a gold signal that a gold trend reversal is approaching. In the Bollinger bands gold indicator example illustrated and explained below, the gold trading Bollinger bands get very wide as a result of high xauusd price volatility on the down swing. The gold trend reverses as gold prices reach an extreme level according to statistics and the theory of normal distribution. The "bulge" predicts the change to a gold downward xauusd trend.

Bollinger Bulge - The Bollinger Bulge - How to Gold Trade Bollinger Bands Bulge