Bollinger Bands Metal Trading Indicator & Metals Price Volatility
When metals price volatility is high; metals prices close far away from the moving average, the metals trading Bollinger Bands width increases to accommodate more possible metals price action movement which can fall within 95 % of the mean.
Bollinger bands metals indicator will widen as metals price volatility widens. This will show as bollinger band bulges around the metals price. When the metals trading bollinger bands widen like this it is a continuation metals trading pattern and metals price will continue moving in this direction. This is normally a continuation metals trade signal.
The Bollinger bands metals indicator example illustrated and explained below illustrates the Bollinger bulge.
High Metals Price Volatility - Metals Bollinger Bands Metal Indicator - Bollinger Bands Bulge
When metals price volatility is low: metals prices close closer towards the moving average, the width decreases to reduce the possible metals price action movement which can fall within 95 % of the mean.
When metals price volatility is low metals price will start to consolidate waiting for metals price to breakout. When the metals trading bollinger bands indicator is moving sideways it is best to stay on the sidelines and not to place any metal trades.
The Bollinger bands indicator example is shown below when the metals bollinger bands narrowed.
Low Metals Price Volatility - Metals Bollinger Bands Metal Technical Indicator - Bollinger Bands Squeeze
