Trade Gold Trading

Bollinger Band Indicator Bulge & Squeeze Analysis

The 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 price volatility used to calculate the narrowing or widening of the trading Bollinger bands. Standard deviation will be higher when the prices are changing substantially and lower when the market trading prices are calmer.

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

How Do I Trade Bollinger Bands Squeeze

Narrowing of trading Bollinger Bands is a sign of price consolidation & is known as Bollinger band squeeze.

When the Bollinger Bands indicator displays narrow standard deviation it's usually a time of price consolidation, and it is a signal that there will be a trading price breakout and it illustrates traders are adjusting their trade positions for a new move. Also, the longer the prices remain within the narrow bands price action setup the greater the chance of a market breakout.

Bollinger Band Bulge in Trading and Bollinger Bands Squeeze in Trading - Bollinger Bands Strategy

Bollinger Squeeze - The Bollinger Bands Squeeze - How to Trade the Bollinger Band Squeeze

How Do I Trade Bollinger Bands Bulge

The widening of Bollinger Bands is a sign of a price break out & is known as Bollinger Band Bulge.

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

Bollinger Band Bulge and Bollinger Bands Squeeze Analysis - Place Bollinger Bands on Chart

Bollinger Bulge - The Bollinger Bulge - How to Trade Bollinger Band Bulge

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