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Bollinger Bands settings: Period 20 Day Exponential Moving Averages; Deviation 2 Standard Deviation; Stochastic settings: K 5; D 3; 14 MA period; Bollinger Bands and Stochastic Strategy Buy Setup In the above example, we can see that combining the Bollinger Band indicator with the Stochastic were going to eliminate a lot of the false breakout signals as were only going to enter a trade only after the price has returned back inside the channel created by the Bollinger Bands indicator and if were in oversoldoverbought conditions.

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