The Bollinger Stochastic Indicator is a great little trade signal for most currency pairs. Many of our EA’s are based around this indicator and it provides solid long term profit time and time again. It can be used on any time frame although it is found to most effective on the 30 minute time frame upwards.
The indicator uses both the Stochastic Oscillator and the Bollinger Bands to show possible area’s of overbought and oversold trends. we have taken it a little bit further by adding a reversal candle stick pattern before the indicator will show a signal. Example, the indicator will not show a sell signal on just the price breaking the upper Bollinger Band and the Stochastic showing overbought. If the price re-enters the Bollinger bands as the candle engulfs the previous candle it then shows the signal. The opposite is true for the Buy signal.