Bollinger Bands Gold Price Action in Trending Markets
Bollinger Bands indicator is used to identify and analyze trending markets. In a trending market this gold indicator clearly shows up/down direction.
Bollinger Bands indicator can be used to determine the direction of the Gold trend. In an upwards trend Bollinger Band indicator will clearly show the direction of the market trend, it will be heading upwards & price will be above middle Bollinger.
In a downwards gold trend the price will be below the middle band the bands will be heading downwards.
By observing the Bollinger bands gold indicator patterns formed by Bollinger bands a trader can determine the direction in which the market is likely to move.
Bollinger Bands Indicator Patterns and Continuation Trading Signals
Upwards Trend
- During an upswing, the candles will stay within the upper Bollinger band the central moving average MA.
- Prices that close above the upper band are a sign of bullish continuation signal.
- Prices can hug/ride the upper band during an upwards gold trend
Upward Trend Trading Strategy Using Bollinger Band Strategy
Downward Trend
- During a down swing, the candlesticks will stay within the moving average MA and the lower band.
- Prices that close below the lower band are a sign of bearish continuation signal.
- Prices can hug/ride the lower band during an downwards gold trend
Down-wards Gold Trend Trading Strategy Using Bollinger Band Strategy
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