Pattern Candlestick strategy filtered with the Parabolic Envelope

Introducing the Pattern Candlestick strategy filtered with the Parabolic Envelope, a powerful method in the world of Forex trading. This approach relies on identifying key candlestick patterns like Shooting Star, Engulfing, Doji, and Dark Cloud Cover, all while leveraging the Parabolic Envelope for trend confirmation. Assuming familiarity with these patterns, let's delve into the setup and trading rules.

Strategy Setup
Time Frame: Preferably H1 or higher for better clarity.
Currency Pairs: All pairs are suitable.
Indicators: Utilize MetaTrader 5 (MT5) with the following Indicators MT5
Parabolic Envelope.
Pattern Recognition.
Symbol Changer.
Optional: Paint Bar Momentum.
Optional: Stochastic Oscillator (5,3,3).
Trading Rules
This strategy offers two modes of execution: scalp trading and trend following, each with distinct entry setups.
Buy 
Confirm an uptrend with the Parabolic Envelope positioned below the candles.
Spot a valid buy candlestick pattern.
Enter the trade at the opening of the next bar.

Sell
Confirm a downtrend with the Parabolic Envelope positioned above the candlestick.
Identify a suitable sell candlestick pattern.
Enter the trade at the opening of the subsequent bar.

Exit Strategy
For scalp trading on candle
Implement a stop loss at the relative low of the preceding 15 candles.
Aim for a profit target ratio of 0.8:1 compared to the stop loss.
For trend trading
Set the stop loss at the previous swing, even if it's within the same trend.
Target a profit ratio ranging from 1:1 to 1:1.5 compared to the stop loss.
Considerations
To manage risk and minimize variance:
Limit yourself to following a maximum of two signals, each with its own dedicated money management approach.
Embrace these guidelines to enhance your trading experience and navigate the Forex markets with confidence.

 

 

Download

https://drive.google.com/file/d/1yZdC5HAKMhRt6q44FO1ZRxYWxNMSE1qz/view?usp=sharing