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Bollinger Bands Gold Trading Indicator Bulge and Squeeze Technical Analysis

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

 

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

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

 

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

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

 

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

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

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

 


The Bollinger Bulge - How To Gold Trade Bollinger Bands Bulge

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

 

Bollinger Bands that are far apart can serve as a gold trading signal that a gold trading trend reversal is approaching. In the Bollinger bands gold trading indicator example below, the gold trading Bollinger bands get very wide as a result of high gold trading price volatility on the down swing. The gold trading 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 trading downward gold trading trend.

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

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

 

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