This strategy is based on stochastics divergence and overbought/oversold levels, with a few other indicators for confirmation. The signals have a high accuracy rate. I trade this on a one minute chart.
The indicators:
The main play is to trade divergences, both regular and hidden. Short term divergences are found on the Stoch(9,3) and should be confirmed with a divergence on Ironrod SMI, although a divergence on the stoch is almost guaranteed to be on the Ironrod SMI. On the other hand, many times the Ironrod SMI picks up divergences more clearly than the stoch and sometimes it picks up divergences when there are none on the stoch, and these can be traded too, but the accuracy rate is higher with both indicators picking up the divergence. Longer divergences are found on the stoch(60,10) and don't need confirmation from any other lower indicator.
EDIT: On stochastics (60,10) I am now using the faster k line (10) for divergences rather than the slower d line (60) because the d line lags way too much and the k line picks up way more divergences. The accuracy of the k line divergences is scary! At least on es.
The highest probability divergence on stoch is when the higher high is above the overbought level and the lower high is below the overbought level, or when the lower low is below the oversold level and the higher low is above the oversold level. The greater the distance between the highs or lows, the higher the probability of the reversal (regular divergence) or continuation (hidden divergence).
Another thing to look out for is when price is in a tight range, not able to make higher highs or lower lows (the swing highs or lows bounce at the same price), but stochastics or Ironrod is making higher highs or lower lows. This has a lower probability of resulting in a reversal or continuation than the regular and hidden divergences, but can still be valid.
Plays can be made with overbought and oversold levels on the stochastics as well. If there isn't a strong trend and price action is in more of a range, matching overbought or oversold levels on both stochastics can be a high probability reversal trade. Pullback plays can be found when stoch(60,10) is at overbought or oversold for a while (more than 30 minutes perhaps) and stoch(9,3) quickly dips to the opposite oversold/bought level.
Confirmation for all of these trades should include a signal from Top Breakout indicator, a change in color (green to red or red to green) of the SMI line on the Ironrod indicator, an arrow from the trend reversal indicator, and a change in color of the Supertrend which paints the candles.
I also draw trendlines and support and resistance lines as part of my strategy and use standard deviation channels to help spot potential reversal areas.
Using the same system on a five minute chart will help spot higher probability and longer lasting moves.
This seems to work particularly well on futures, perhaps because they move more than most stocks.