Bollinger Band Reversion for XAUUSD (Gold)

Buy lower band, exit upper band — volatility-adaptive mean reversion.

Why Bollinger Band Reversion Works on XAUUSD

Bollinger Bands plot two standard deviations around a 20-period SMA. Price reaching the lower band signals a statistical extreme — about 2.5% probability assuming normality. The strategy fades these extremes. Works on range-bound symbols; layer in a "no entry if bands are widening" rule to skip breakout regimes.

Gold (XAUUSD) is the most-traded commodity pair in retail forex. Strong directional moves during news, high intraday volatility, and clean trending behavior on H1/H4 — a favourite for trend-following and breakout bots.

Commodities like gold and silver have well-defined fundamental drivers — central bank policy, real yields, USD strength. Combined with the technical setup below, this gives the strategy two independent edges.

Pine Script Source

Copy this into PineForge — backtest on XAUUSD or any supported symbol, then deploy as a live bot.

//@version=5
strategy("Bollinger Band Reversion", overlay=true)

length = input.int(20, "BB Length")
mult = input.float(2.0, "BB Multiplier")

basis = ta.sma(close, length)
dev = ta.stdev(close, length) * mult
upper = basis + dev
lower = basis - dev

if close < lower
    strategy.entry("Long", strategy.long)

if close > upper
    strategy.close("Long")