29# Trend Envelopes Ma with Selected Candlesticks  - Winning Strategy

Pattern Candlestick selected with Parabolic Envelope is a Price Action trend forex strategy based on some of the patterns: Shoot Star, Engulfing, Doji, Dark Cloud Cover. In this case I take it for granted that the reader is familiar with these models.

Setup Strategy

Time Frame H1 or higher.

Currency pairs any

Indicatros MT5

Parabolic Envelope

Pattern Recognition

Symbol changer

Paint Bar Momentum optional

Stochastic Oscillator (5,3,3) optional

Trading Rules

We propose two ways to trade with this template: scalping on the bar and following the trend defined by the Parabolic Envelope starting from a candlestick model. In both cases the entry setup is the same.

Buy

Parabolic Envelope under the candles indicating an up trend.

Buy candlestick pattern.

You enter the position at the opening of the next bar.

Sell

Parabolic Envelope above the candlestick indicating a down trend.

Sale candlestick template.

You enter the position at the opening of the next bar.

Exit position

Scalping on the candle

Stop loss on the relative minimum of the previous 15 candles.

Profi target ratio stop loss 0.8:1.

Position trading

the stop loss must be inserted on the previous swing even if within the same trend.

The target profit in this case is stop loss ratio from 1:1 to 1:1.5.

Considerations

To reduce the negative variance I recommend following a maximum of two signals, each with its own Money Management.

Happy Trading!!