Bollinger bands or stochastic oscilator?

[Deepanshu]

actually bollinger band is a good indicator
it gives us indication when to buy, sell or remain on hold
also Stochastic oscillator is also a good indicator as it provides an overbought and oversold area
which indicates when to buy or sell
actually rather comparing both indictors, try to use both of them and use their combined knowlege

[SyedMuhammad151214]

May to bahi Bollinger band ko perfer karata hon is ki wajay ya hay kay may nay abi Bollinger band aur movie average he sekha hay aur done bohat acha kam karaty han Stochastic Osicilatro kay barya may may nay nahi abi study ki hay

[upiter9999]

I use both because they are useful in the my analysis, I use stochastic oscilator as the order trend analysis as well as the wavelength and BB-like support and resistance levels

[fxearner]

bhai ji bollinger band he stoch se jada use hota hai,traders stoch par etna jada trust nahi karte jetna bollinger par karte hai lekin enko use karne ke liye trader ko achhe se practice karna hoga tabhi wo enko samajh sakenga..

[loys]

i prefer bollingar band its a legend indicator, so one along with these two and that is parabollic SAR as a lagging indicator in this Bollingerband and Parabolic SAR produce signal and i use stoch just to confirm that signal and its best with this do not enter when stoch caught in above 70 or below 30.

[FAHEEM66]

Yes yay dono trend indiactor han technical analysis main commonly use kyay jaty han and bolliger band jo k hamn batata ha k trend katna close ha and also katni fluctance ho gi and support and resistance ko be predict karta ha and stochastics jo kafi best ha yay be hamn entry and exit point bataa ha and also s and r

[sajid1240]

These two are best but i add another one along with these two and that is parabollic SAR as a lagging indicator in this Bollingerband and Parabolic SAR produce signal and now I can not use it anymore but I think all the same indicators indicate whether the prices will go down or up..

[Bieela]

If I prefer to use Bollinger bands than stoch. Because the stoch most false signals but it would be great if the two indicators are combined. Due to the combination on the second indicator would be to reinforce or make-your analysis will be better and you will get more profits.

[d5358]

Stochastic Oscillator Basics
The Stochastic Oscillator consists of two lines - when both lines are included on a price chart, it is referred to as the Full Stochastic. The two lines are:
%K - tracks the current market rate for the currency pair

%D - "smoothes out" the %K line by calculating and plotting the exchange rate as a moving average - this is also known as the signal line

Trading platforms perform the calculation based on this formula:
%K = 100 x (Closing Price - Lowest Price of N Periods)
(Highest Price of N Periods - Lowest Price of N Periods)
Note that N is usually is set to 14 periods as this represents a large enough sample of data to arrive at a meaningful calculation.
Most systems allow you to modify the number of reporting periods but by doing this, you could alter the effectiveness of the results.
%D = 3 – Period Moving Average of %K
The calculation to create the %D Stochastic uses the last three valuations of %K to create a three-period moving average of the %K Stochastic. The result is a "smoothed-out" version of %K.
Because %D is a moving average of %K, it is referred to as "Stochastic Slow" as it reacts more slowly to market price changes than %K. As you would expect, %K is also known as "Stochastic Fast".

---------- Post added at 11:50 AM ---------- Previous post was at 11:47 AM ----------

Stochastic Lines and Forex Signals
Overview
The Stochastic Oscillator produces three types of signals:

Crossovers

Divergence (strength of trend)

Overbought / Oversold designations



CROSSOVERS

A crossover occurs when the %K line (the fast stochastic) intersects the %D line (the slow stochastic).
Because the %K line reacts more quickly to market changes, it oscillates at a faster rate then the %D line. Under certain conditions, it can catch up to, and cross over, the %D line.
When the %K Stochastic crosses over and moves above the %D Stochastic, the interpretation is that the market rate is gaining at a faster rate than the average represented by the %D Stochastic. This increase in price strength is considered a buy signal.
A sell signal is the result of the %K Stochastic crossing under the %D Stochastic. This is because the faster moving %K line is declining at a faster rate than the overall, downward trend.
DIVERGENCE

Divergence is simply the difference – or the gap – between the %K and %D Stochastic lines.
Because the %K line moves faster than the %D line, the divergence (the gap) between the two stochastics increases as a trend gathers momentum. However, the lines come closer together as momentum wanes in the prelude to a rate reversal.
OVERBOUGHT AND OVERSOLD DESIGNATIONS

Once the %K line climbs into the 80 and above region of the Stochastic scale, analysts consider this to be an overbought condition. This could lead to a sell-off forcing the price downwards.
When the %K line falls below 20 on the Stochastic scale, the market may now consider the currency pair to be oversold. As a result, traders may start buying thereby lifting the price higher as the market scoops up a "bargain".

---------- Post added at 11:52 AM ---------- Previous post was at 11:50 AM ----------

When acting on any Stochastic Oscillators market signal, you should always confirm the signal with another technical indicator. The Relative Strength Indicator is an excellent option for verifying the veracity of the current trend, while Bollinger Bands provide insight into the volatility of the currency pair.

[shahid079]

bollinger band is the very simple but a very popular strategy and it is not hard at all but you should must learn the bollinger band to get benefit from it. and stochastic oscillator is really a great indicator to determine the market trend.