20# Bollinger Bands and Stochastic Trading System

 

The Bollinger Bands and Stochastic Strategy. Combining the Bollinger Bands indicator, which is a volatility indicator, together with the Stochastic indicator which is a momentum indicator we can find points in prices where the market is losing steam and it’s .

Dies ist eine sehr Interessante Strategie, auch wenn sie noch nicht voll entwickelt ist. See what kind of technical indicators and oscillators work best in conjunction with Fibonacci retracements to confirm stock Anmelden - Es ist kostenlos! Schöne und gute Überlegungen.

BREAKING DOWN 'Bollinger Band®'

FX Trader Magazine. Free forex trading magazine. Technical Analysis. Using Bollinger Band and Stochastic Along with Price Action.

Hi smokinnurse, danke für Deine zügige Antwort. Ich denke auch, dass es so etwas nicht gibt. Bei den Seitwärtsphasen gehe ich übrigens genauso vor. Musste gerade in diesem Bereich eine Menge Lehrgeld zahlen. In starken Trendphasen einzusteigen und zumindest einen Teil des Trends mitzunehmen, finde ich jetzt nicht so schwer - siehe z.

Da wäre dann "nur" noch zu klären, wann man wie eine Marktphase definiert. Wie sieht eure Lösung dafür aus? Schöne und gute Überlegungen. Es ist unfassbar wichtig, sich darüber eingehende Gedanken zu machen!

Wünsche euch jetzt ein schönes Wochenende! Kannst du eine solche Strategie mal Online stellen? Du hast Recht, der Titel ist doof. Zumindest wenn man mehr darüber nachdenkt es war nur meine erste Intention. Das grundlegende Problem einer Strategie ist die Marktphase zu erkennen. By Investopedia Updated July 26, — 9: Learn how to establish profitable trading strategies using technical trader favorites such as Bollinger Bands and the moving Learn about the stochastic oscillator and how to it is used to create an effective forex trade strategy, including how to Discover how the stochastic oscillator and the Stochastic Momentum Index differ and why the latter is considered a more refined Understand what metrics are most commonly used to assess a security's volatility compared to its own price history and that See what kind of technical indicators and oscillators work best in conjunction with Fibonacci retracements to confirm stock Learn about the concepts behind Tushar Chande's momentum oscillator, including some simple steps you can use to help build Learn how the stochastic oscillator indicator is sensitive to price, and discover technical indicators traders use to complement it such as the RSI and MACD.

The Magic of Elliott Wave analysis. William Gann — A Legend. Each specific market has specific designed trading strategies. Whilst creating a trading system, the trader will configure the settings chart timeframe, indicator etc. This suggests that each trading system has the appropriate default settings for that specific market, and if the trading system is going to be traded on different markets then these settings are adjusted accordingly.

As we have already highlighted in the aforementioned, price action is the best indicator, as well as the need to also determine which timeframe and indicator settings mostly adapt and identify with our trading system.

Overall we must have a perfect combination of these three to get the best possible result. The speed and price momentum are identified by the Stochastic indicator and acquire a possible price trend alongside with the Bollinger band which automatically detects the volatility measurement.

Keep in mind, there are numerous combinations which exist, some of which function most effectively in a specific timeframe, indicator setting and specific security. It has been discovered that selling the breaks of the higher Bollinger Band is a way to take advantage of overbought conditions. Typically, once a higher band has been broken due to heavy buying, the price of the security will revert back below the higher band and head toward the middle band.

I based my strategy on this theory, but I will use the Stochastic indicator as a trigger line to confirm my trading setup. If the price action bullish candlestick closes above the upper Bollinger Band, which I consider to be the first signal, we can then move towards the Stochastic oscillator and wait until it breaks the 80 level to the downside. Once the break has occurred a short position can be taken, with a potential move towards the middle Bollinger Band.

Simultaneously, we place our stop loss above the shadow of the candle which closed above the upper Bollinger Band. After withdrawing 75 percent of the profit, the stop loss can be adjusted to breakeven in case the price turns against the trader. As the price starts to pull away from the middle Bollinger Band, and the price has penetrated the lower Bollinger Band, the remaining profit can then be withdrawn.