Stochastic Oscillator and Bollinger Band 5 minute strategy

Tuesday, July 14th, 2015 by James Frangelton

We have yet another strategy here that you can implement when trading. Its important that you demo this strategy before actually going live. The opportunities aren’t massively common, however if used accurately this can help improve the way you trade. This strategy can be used along with other strategies like support and resistance, price action and swing trading.

The stochastic oscillator is a momentum based indicator that uses support and resistance to determine its position and was developed by Dr. George Lane in the last 50s. It refers to a point in the current price in relation to the price range over a period of time.

The strategy is simple and can be applied to a 5 minute, 15 minute or 30 minute time frame. For this example lets use a 5 minute chart. The first condition you are looking for is a candle breaking the UPPER or LOWER Bollinger Band (obviously a bullish candle for the upper and bearish candle for the lower). Once this condition has been met you must then draw your attention to the Stochastic Oscillator. There are two white dotted lines, the upper line is known as the 80 line and the lower is known as the 20 line. We are looking for the stochastics to have traveled above the 80 line for a bullish candle traveling outside the upper Bollinger Band, or below the 20 line for a bearish candle traveling outside the lower Bollinger Band. Once you have identified this you are going to wait for the next candle to form before you get into the trade. Once the next candle has formed the stochastics lines should have crossed and be heading back towards the white line. If the stochastic lines have not yet crossed or they are becoming further apart do not take the trade, wait until all of the conditions are met. If the conditions have been met, place a trade in the opposite direction of the previous candle for 5 minutes.

Stochastic Oscillator and Bollinger Band 5 Minute Strategy explained on YouTube

In this example below you can see all of the conditions of the trade were met and the call would have indeed won for a 5 minute trade.


Basic Trading Tips:

Avoid USD/JPY or JPY pairs.
Avoid trading during news events
Don’t chase losses, move onto another asset


Try trading commodities
I find SILVER during the asian session works quite well
Look for volatility when trading currencies
Do not trade against short term aggressive trends

I hope you find some of this information useful and either implement this strategy or the Stochastic Oscillator into your own trading strategy as further confirmation. You can leave a comment below or visit my website and select “contact us” if you are unsure of anything!

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James Frangelton

The Best 5 Minute Strategy!

Thursday, June 5th, 2014 by Tim Lanoue

Finding a highly profitable quick term trading strategy can be difficult and sometimes hard to apply, fortunately for you guys today I am going to provide you with one that not only has a great success rate but also is pretty simple to use.  What you are going to need for this 5 minute strategy is access to a charting solution, access to your trading broker and a little bit of patience. Checkout the top 5 free charting solutions for binary options.

This 5 minute strategy only requires the use of one trading indicator and it is the Derivative Oscillator indicator.  This indicator is a trend generating and trend finding indicator that applies itself directly into the price action of our targeted assets.  The Derivative Oscillator is a unique technical analysis indicator solely because it uses the assets momentum to formulate and generate there signal output.


Before we can apply this indicator into our trading strategy we need to make sure that the time frame that we are watching our asset is set on 5 minutes, since this is a 5 minute strategy.  Any time frame watched outside this will affect the accuracy of the signals generated.  In addition, this indicator works best for high volume stocks and low volatility currency pairs.  Some of the more popular high volume stocks that would work great for this strategy would be Apple, Nike, Exxon and Amazon.  Low volatility currency pairs that we would want to trade with when using this strategy would be Eur/Usd, Usd/Chf, Nzd/Usd, and Usd/Cad.

Now that we have all the basics set up we can look into applying this indicator into a trading strategy.  In the picture below you can see an example of how this indicator would look when applied to our trading strategy.  If you look closely you can see how the derivative oscillator bars go in the same direction as the price action candles, or it will predict it and you can see how it changes and how the price also then follows suit.  We have three trading opportunities in this example and all three of them end up as winners.  In order for a trading signal to be generated we need to wait for one step to happen and one confirmation.  The one step would be that there is a change in direction in our derivative oscillator indicator.  Meaning that if there is a negative candle below the 0.00 value the next candle must be a positive candle, and vice versa.  The confirmation is if the candle forming above or directly next to our derivative oscillator is heading in the same direction as that candle, if it is then we are good to place a trade in that direction for an expiry time of 5 minutes.



This is a rather simple indicator and so far I have been experiencing around a 73% in-the-money success rate with it, I keep planning to researching and developing new strategies for you guys so just stay tuned in!  Best of luck, and if you have any questions or comments please feel free to leave them below!