This version of Bollinger bands stops is applied to the stochastic indicator.
The combination of the Bollinger Bands indicator (which is a volatility indicator) and the Stochastic indicator (which is a momentum indicator) can help us find prices that are losing steam. It's possible to see points where the market is ready to turn the tide. Bollinger Bands can help you determine your entry points and take profit points, while the Stochastic indicator is useful for timing the market.
It is being enhanced by stochastic to help with the use of the usual set of alarms.
Currency Pairs: EURUSD, GBPUSD, EURJPY, GBPJPY, and EURGBP
Trading Session: Any
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How to trade with Bollinger Band Stochastic MT5 Forex Indicator?
Bollinger Bands settings:
- Period = 20 Day Exponential Moving Averages;
- Deviation = 2 Standard Deviation;
- %K = 5;
- %D = 3;
- 14 MA period;
Wait for the lower band of the Stochastic indicator to penetrate to the downside. Stochastic indicators must not be lower than 20 to indicate oversold conditions. Wait for the market to reach the upper band in five minutes. Then, enter long at the end of the candle. Your stop loss should be 5 pips lower than the "breakout" candle. Take profit is aimed at the middle Bollinger band.
Wait for the upper band of the Stochastic indicator to penetrate to the upside. Stochastic indicators must be higher than 80 to indicate oversold conditions. Wait for the market to close below the upper limit of its 5-minute candles. Then, enter short at the end of the candle. Your stop loss should be 5 pips higher than the "breakout" candle. Take profit is aimed at the middle Bollinger band.
How to download and install an indicator?
In order to install the indicator on your MT5 platform, you need to follow these steps:
- Click on “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into MT5>Indicator folder of the MetaTrader5 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select “Bollinger Band Stochastic MT5 Forex Indicator” template to apply it on the chart.
Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.
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