The basic premise is a simple one - which is good - but there is a risk warning attached. Namely, this will work reasonably well when the market is consolidating in a range but, sooner or later, it's goin' to break out of the range. At that point - you'll come unstuck, badly! Additionally, if you use it to fade the market when it's trending - you'll also end up bashing your head against the wall as price 'rides the bands' and any oscillator stays permanently over bought/sold.
Knowing when to ignore indicators, i.e., knowing when the information they impart is at best unreliable and at worst positively misleading - is the secret to using them successfully. Trading any or all of the signals they offer without evaluating the context in which they appear (e.g. a breakout or trend in this case) will lead to losing trades and greatly reduce the success ratio of the signals generated by the indicators. Needless to say, this principle applies to all indicators - not just the ones mentioned here.
Tim.