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Bollinger Bands Gold Indicator and XAUUSD Price Volatility

When gold price volatility is high; xauusd prices close far away from the moving average, the xauusd Bollinger Bands width increases to accommodate more possible gold price action movement that can fall within 95% of the mean.


Bollinger bands xauusd indicator will widen as gold price volatility widens. This will show as bollinger band bulges around the xauusd price. When the xauusd bollinger bands widen like this it is a continuation xauusd pattern and gold price will continue moving in this direction. This is normally a continuation xauusd signal.


The Bollinger bands xauusd indicator example shown below illustrates the Bollinger bulge.

Bollinger Bands Bulge

High XAUUSD Price Volatility - XAUUSD Trading Bollinger Bands Gold Indicator - Bollinger Bands Bulge



When gold price volatility is low; xauusd prices close closer towards the moving average, the width decreases to reduce the possible gold price action movement that can fall within 95% of the mean.


When gold price volatility is low gold price will start to consolidate waiting for gold price to breakout. When the xauusd bollinger bands indicator is moving sideways it is best to stay on the sidelines and not to place any gold trades.


The Bollinger bands indicator example is shown below when the xauusd bollinger bands narrowed.

Bollinger Bands Squeeze

Low XAUUSD Price Volatility - XAUUSD Trading Bollinger Bands Gold Indicator - Bollinger Bands Squeeze

 

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