As we already know, these two indicators have a lot in common. For example, their form of representation is the same – the lines that move together, right? Well. Let’s imagine that the chart for the currency pair is going up and indicating a high resistance level.
In the same time the stochastic can indicate that the market is overbought and that the price is going to plummet soon. In this case both stochastic and Bollinger indicators are giving the clear signs about the further movements of the markets which gives us the perfect opportunity to short the couple.
If used right, this combination can help your trades to go to the level around 500 pips at once. And that is good number for a short trade.