Bollinger Bands XAUUSD Indicator Bulge and Squeeze Technical Analysis
The XAUUSD Trading Bollinger Bands are self adjusting which means the bands widen and narrow depending on gold price volatility.
Standard Deviation is the statistical measure of the gold price volatility used to calculate the widening or narrowing of the xauusd Bollinger bands. Standard deviation will be higher when xauusd prices are changing significantly and lower when the xauusd market prices are calmer.
- When gold price volatility is high the Bollinger Bands widen.
- When gold price volatility is low the Bollinger Bands narrows.
How to XAUUSD Trade Bollinger Bands Squeeze
Narrowing of xauusd Bollinger Bands is a sign of gold price consolidation and is known as the Bollinger band squeeze.
When the Bollinger Bands xauusd indicator display narrow standard deviation it is usually a time of gold price consolidation, and it is a xauusd signal that there will be a xauusd price breakout and it shows xauusd traders are adjusting their trade positions for a new move. Also, the longer the xauusd prices stay within the narrow bands the greater the chance of a xauusd price breakout.
Bollinger Squeeze - The Bollinger Bands Squeeze - How to XAUUSD Trade Bollinger Bands Squeeze
How to XAUUSD Trade Bollinger Bands Bulge
The widening of Bollinger Bands is a sign of a xauusd price breakout and is known as the Bollinger Bands Bulge.
Bollinger Bands that are far apart can serve as a xauusd signal that a xauusd trend reversal is approaching. In the Bollinger bands xauusd indicator example shown below, the xauusd Bollinger bands get very wide as a result of high gold price volatility on the down swing. The xauusd trend reverses as xauusd prices reach an extreme level according to statistics and the theory of normal distribution. The "bulge" predicts the change to a xauusd downward trend.
Bollinger Bulge - The Bollinger Bulge - How to XAUUSD Trade Bollinger Bands Bulge