Bollinger Bands XAUUSD Price Action in Ranging XAUUSD Markets
Bollinger Bands XAUUSD Indicator is also used to identify periods when a xauusd market xauusd trend is overextended. The guidelines below are considered when applying this xauusd indicator to a sideways gold trend.
Bollinger Bands XAUUSD Indicator is very important because it is used to give xauusd signals that a xauusd price breakout may be upcoming.
During a xauusd trending market these techniques do not hold, this only holds as long as Bollinger Bands are pointing sideways.
- If the gold market price touches the upper band it can be considered overextended on the upside - overbought.
- If the gold market price touches the lower band the gold price can be considered overextended on the bottom side - oversold.
One of the uses of XAUUSD Trading Bollinger Bands indicator is to use the above overbought and oversold xauusd guidelines to establish buy and sell targets during a ranging gold market.
- If gold price has bounced off the lower band crossed the center-line moving average then the upper band can be used a sell level.
- If gold price bounces down off the upper band crosses below the center moving average the lower band can be used as a buy level.
Trading Bollinger Bands in Ranging XAUUSD Markets - Bollinger Bands XAUUSD Strategy
In the above ranging xauusd market the instances when the gold price hits the upper or lower bands can be used as profit targets for long/short xauusd trade positions.
XAUUSD trades can be opened when the xauusd market hits the upper resistance level or lower support level. A stop loss xauusd order should be placed a few pips above or below depending on the xauusd trade opened, just in case the gold price action breaks out of the range within these Bollinger bands.