Combining Bollinger Bands & Stochastic Oscillator for a Smart Reversal Strategy

A Simple Yet Powerful Reversal Strategy

This article presents a simple yet powerful trading strategy that uses Bollinger bands and the stochastic oscillator in a smart combination to predict intermediate market reactions.

Bollinger Bands

Volatility bands are lines plotted above and below a central price measure (typically a moving average). The distance between the bands and the central line de…