Engulfing Bar Indicator

Engulfing Bar indicator is a pattern recognition indicator for Forex, Stocks, Indices, Futures, Commodities and Cryptos.

The Engulfing Bar indicator is an enhanced pattern of the popular Engulfing Bar to keep only the best patterns produced in the market.

The strategy that comes with the Engulfing Bar is based on price action.

Inputs of the indicator are:
MaxBars: number of bars back used to calculate the indicator
BuySignals (true/false): you can filter signals and decide to show BUY signals or not. Default settings is true (no filter).
SellSignals (true/false): you can filter signals and decide to show SELL signals or not. Default settings is true (no filter).

Alerts:
The alerts are managed by TradingView trading platform features and not by the indicator itself. You must use Engulfing Sell less than zero and Engulfing Buy greater than zero as settings for the alerts.

Trading rules:
For BUY: wait for a bullish Engulfing Bar to print on a support zone after a down trend. Wait for the price to break high of the Engulfing Bar (5 pips above the high for H1 and higher timeframes, 1 pip for M5). Immediately enter in the trade once high is broken. You also can use a BUY STOP order placed 5 pips above the high of the candle (plus spread). Stop Loss should be placed below the low of the Engulfing Bar. If order is not triggered in the next candle, then trade is invalidated and should be canceled.

For SELL: wait for a bearish Engulfing Bar to print on resistance zone after an up trend. Wait for price to break the low of the Engulfing (5 pips below the low for H1 and higher timeframes, 1 pip for M5). Immediately enter in the trade once low is broken. You also can use a SELL STOP order to place 5 pips below the low of the candle. Stop Loss should be placed above the high of the Engulfing Bar. If order is not triggered in the next candle then trade is invalidated and should be canceled.
The Engulfing Bar indicator can be used with any timeframe.

The Engulfing Bar indicator can be used with any class of asset: Forex, Stocks, Indices, Futures, Commodities and Cryptos.

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