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Bollinger Band width XAUUSD Analysis & Bollinger Band width XAUUSD Signals

Created by John Bollinger.

This xauusd indicator is derived from the original Bollinger indicator.

Bandwidth is a measure of the width of the Bollinger Bands.

Calculation

Band-width = Upper Band - Lower Band

Middle Band

How to Place Gold Bollinger Bandwidth Indicator in Chart on Platform

This is an oscillator, based on the theory that price and volatility occurs in cycles.

Periods of high volatility is followed by periods of low volatility.

When volatility is high, bands are far apart, the bandwidth will also be wide apart.

When volatility is low, Bands are narrow and the band-width indicator will also not be narrow.

The blue-line represents the highest Band-width value for a previous number of periods.

This line also identifies periods of high volatility

The redline represents the lowest Band-width value for a previous number of periods.

This line also identifies periods of low volatility

Gold Analysis and How to Generate Signals

Consolidation - Bollinger Squeeze

Bollinger Band-width is used to identify the squeeze, which is a consolidation period of price, after which the price then breaks out in a certain direction.

Signals are generated when there is a price break out signal is generated by the indicator starting to go up after touching the red line. When the bandwidth line starts to move upward it signifies that volatility is rising as the price is breaking out.

Bollinger Bandwidth Indicator Analysis in Gold - No Nonsense Bollinger Bandwidth Buy and Sell Signals Indicator

Squeeze

How to Place Bollinger Bandwidth Indicator in Chart

Breakout Signal After Band-width Squeeze

However, this is a directionless indicator and needs to be combined with another technical indicator such as the moving average MA to figure out the direction of the market trend/ Breakout.

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