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L.U.V Trend Candlestick Strategy

Passionate traders with discipline and proper risk management will find this strategy valuable. As always, follow the rules of the strategy, keep the winners, and cut the losing trade when SL hits. 

Trend Candlestick Strategy

Strategy Idea

  • Settings explained apply to Long Only!

The strategy aims to find reversals with the use of BellCurve. BellCurve indicator identifies market impulses and the height of the BellCurve is a measure of the strength. Equally high Bellcurves means that the strength in the Impulses is equally strong. This enables us to compare Bellcurves with each other to understand how strong the current Impulse is in relation to the previous ones.

BellCurve shows us the most important Impulses, however, there are tons of smaller Impulses that we don’t see in the indicator and hence we can not identify all potential reversals. We solve this by using the scale of the BellCurve to generate the coloring for the Trend CandleStick, this enables us to see all potential reversals points.

BellCurve is good for understanding if an Impulse is complete, but this strategy makes it possible to identify if an Impulse is about to complete in real-time and hence we may have a very good entry. The strategy will also show how you get a more “certain” entry by entering on the first pullback.

Indicators Needed

  • Trend Candlestick (Expo)
  • BellCurves (Expo)
  • Confirmation (Expo)

Trend CandleStick Setting

Custom Source: Use BellCurve “Negative BellCurve”

  • Leave all other settings to standard.

Trend CandleStick Setting

Custom Source: Use BellCurve “Negative BellCurve”

  • Leave all other settings to standard.

BellCurves Settings

Input Source: Select High as the input source.

Scale: If you can’t see any values on the BellCruve scale, increase the scale with some zeros. You usually have to do this for FX.

It’s important that you have values on the BellCurve Scale since it’s used to generate the coloring in Trend Candlestick.

Confirmation Settings

Input Source:  Select High as the input source.

Trend Length: I have set it to 7 to make it react quicker. If you prefer more certainty you may find value 9 or 14 more valuable.

  • Set Magnify Overbought/Oversold to 2
  • Use WMA for Trend Method.

Confirmation Settings

Input Source:  Select High as the input source.

Trend Length: I have set it to 7 to make it react quicker. If you prefer more certainty you may find value 9 or 14 more valuable.

  • Set Magnify Overbought/Oversold to 2
  • Use WMA for Trend Method.

Your Choice

  • Trend CandleStick comes with a Retracement Line and a Stop Loss Line. You can use either of them, it’s your choice. I myself use the Retracement Line and I will therefore explain the strategy based on it.

 

With the settings above your chart should look like this!

Trend Candlestick Trading Setup

Entry/Exits & Target/Stop Loss

Aggressive Entry One

This entry is more “aggressive” since we enter when the price crosses the retracement line.

  1. The candle coloring is red.
  2. A negative Bellcurve is shown.
  3. The confirmation Line is Green.
  4. Price crosses over the retracement line and the candle color are still red.
  5. Enter Long!
Aggressive Long Entry

Aggressive Entry Two

This entry is more “aggressive” since we enter when the price crosses the retracement line.

  1. The candle coloring is light blue.
  2. A negative Bellcurve is shown.
  3. The confirmation Line is Green.
  4. Price crosses over the retracement line and the candle color are light blue.
  5. Enter Long!
Aggressive Long Entry

Normal Entry

This entry is more “certain” since we wait for the price to bounce off the retracement line showing us that there is a buying interest. This entry style requires us to check what has happened recently in the chart.

  1. The candle coloring shall have been red recently.
  2. A complete negative BellCurve shall be shown.
  3. The confirmation line shall have been above value 0 previously (in positive territory), and shall not be under the value -2.
  4. Price hits the retracement line and the candle color is light blue.
  5. Enter Long!

Take Profit 

  • Take profit if price crosses under the retracement/trailing line.

    Stop Loss

    • Set Stop Loss at previous low.
    • Or you use a trailing stop of your choice.

      Disclaimer

      Copyright by Zeiierman.

      The information contained in my scripts/indicators/strategies/ideas does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.

      All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.

      My scripts/indicators/strategies/ideas are only for educational purposes!