Combining the Bollinger Bands With the Stochastic Oscillator in a Trading Strategy.
Can the Bollinger Bands and the Stochastic Oscillator Provide Good Signals Together?
The Stochastic Oscillator is a great contrarain indicator. Similarly, the Bollinger Bands can also hint at a possible market inflection by using statistical barriers. What if we try to combine the two together to give us a timely signal of when a reaction should occur. This means that we will use the Stochastic Oscillator and the Bollinger Bands to produce contrarian signals. The first two parts will introduce the Stochastic Oscillator and the Bollinger Bands and the third part will present the strategy and its results. The research is as always done in Python.
I have just published a new book after the success of New Technical Indicators in Python. It features a more complete description and addition of complex trading strategies with a Github page dedicated to the continuously updated code. If you feel that this interests you, feel free to visit the below link, or if you prefer to buy the PDF version, you could contact me on Linkedin.
