The Optimized Engulfing Strategy is a trend-following system designed to capitalize on bullish and bearish engulfing patterns in the market. It uses a combination of price action, trend direction, and volatility-based risk management to execute high-probability trades. Key Components:
Bullish Engulfing Pattern: A bullish engulfing candle is identified when: The current candle closes above its open (bullish). The previous candle closes below its open (bearish). The current candle's close is higher than the previous candle's open. The current candle's open is lower than the previous candle's close. This pattern signals potential bullish momentum.
Bearish Engulfing Pattern: A bearish engulfing candle is identified when: The current candle closes below its open (bearish). The previous candle closes above its open (bullish). The current candle's close is lower than the previous candle's open. The current candle's open is higher than the previous candle's close. This pattern signals potential bearish momentum.
Trend Confirmation: Trades are only taken in the direction of the trend: Buy: When the 50-period SMA (simple moving average) is above the 200-period SMA, indicating an uptrend. Sell: When the 50-period SMA is below the 200-period SMA, indicating a downtrend.
Risk Management: Stop Loss: Placed below the low of the engulfing candle (for buys) or above the high (for sells), with an additional buffer based on the ATR (Average True Range) multiplied by a user-defined factor (default: 1.5). Take Profit: Calculated using a fixed risk-to-reward ratio (default: 1:2), ensuring a potential reward that is double the risk.
Session Filtering: Trades can be limited to specific trading hours using a customizable session filter (default: 24 hours).
Trade Execution: Separate logic is implemented for buy and sell trades, allowing independent toggling of long or short positions via user inputs.
Visualization: Bullish and bearish engulfing candles are highlighted on the chart for clarity. The ATR value is displayed in the top-right corner of the chart for reference.
How It Works:
Identify a bullish or bearish engulfing pattern. Confirm the direction of the trend using the 50 SMA and 200 SMA. Ensure the market is within the allowed session filter (e.g., London or New York sessions). Enter a trade if all conditions are met: Long trades for bullish engulfing patterns in an uptrend. Short trades for bearish engulfing patterns in a downtrend. Manage the trade using a stop loss and take profit based on ATR and the risk-reward ratio.
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send an email to jcrewzn@gmail.com
Warning: please read our guide for invite-only scripts before requesting access.
Only users authorized by the author have access to this script, and this usually requires payment. You can add the script to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author — learn more here. For more details, follow the author's instructions below or contact jcrewzn directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
작성자 지시 사항
send an email to jcrewzn@gmail.com
Warning: please read our guide for invite-only scripts before requesting access.