Engulfing Overlap Zone by RWBTradeLab
- Indicators
-
Md Hasibul Kabir
Founder & Developer at RWBTradeLab.
I develop high-quality trading indicators, expert advisors (EAs),
and utility tools for MetaTrader 5.
My work focuses on precise calculations, non-repainting logic,
and clear visual market structure. - Version: 1.0
Engulfing Overlap Zone by RWBTradeLab
A clean, non-repainting engulfing OVERLAP detector for MetaTrader 5 — the most selective member of the RWBTradeLab engulfing family. It finds the rare, high-interest moment when a FAILED engulfing zone is overlapped by a CONFIRMED opposite engulfing zone: trapped traders on one side, fresh confirmed pressure on the other, both at the same price area. All from CLOSED candles only.
What This Indicator Does
The indicator runs a 3-step detection chain:
Step 1 — Engulfing Detection (internal engine)
Confirmed engulfing patterns by CLOSE (wicks alone don't count):
- Regular Engulfing (2 candles): the very next candle closes beyond the base candle's high/low
- E-Regular Engulfing (multi-candle): a run of same-color candles after the base (Dojis skipped, an opposite candle cancels); the engulfing close happens on the 2nd or later candle
- A Regular pattern on the same base takes precedence over E-Regular
Step 2 — Failure Detection
- A confirmed Buy Engulfing FAILS when a later Red candle CLOSES below the base low
- A confirmed Sell Engulfing FAILS when a later Green candle CLOSES above the base high
Step 3 — Overlap Detection (the actual signal)
The indicator then looks for a CONFIRMED opposite engulfing whose confirmation happened at or before the failure candle, and whose base zone geometrically OVERLAPS or touches the failed zone — in both time and price. When several candidates exist, the one confirmed closest to the failure wins.
- Buy EG Overlap: a failed SELL engulfing overlapped by a confirmed BUY engulfing zone
- Sell EG Overlap: a failed BUY engulfing overlapped by a confirmed SELL engulfing zone
Key Features
Professional Chart Display
- BOTH zones are drawn as boxes: the failed zone and the opposite engulfing zone, each in its own color
- Boxes are drawn BEHIND the candles — price action always stays readable
- One clear label at the overlap: "Buy EG Overlap" (below, green) or "Sell EG Overlap" (above, red)
- Buy/Sell box colors + label colors — fully adjustable
- Label distance scales with the overlap height (percentage based)
Non-Repainting Engine
- All patterns, failures and overlaps are calculated on CLOSED candles only
- Zones are rescanned once per new bar, not on every tick — with an internal detection cache for zero terminal lag
- Automatic object cleanup — remove the indicator and the chart is spotless
Chart = Alerts, Always
- Drawing and alerts share ONE detection pass over the same rules
- An alert fires exactly when the overlap is completed (the opposite pattern's confirmation candle closes) — once per event, never repeated
- Whatever fires an alert is exactly what you see on the chart
Alerts (bar-close only, off by default)
- 2 alert types: Buy EG Overlap and Sell EG Overlap — each with its own On/Off switch
- 3 delivery channels: Popup, Push Notification, Email
- Every alert message includes event, price, symbol, timeframe and time
Inputs
- Candle Length (closed candles) — how many recent closed candles are scanned (default 50)
- Show/Hide toggles: Buy Engulfing Overlap, Sell Engulfing Overlap, Text Labels
- Buy/Sell box colors + label text colors
- Text Offset from Box (% of overlap height, min 20)
- Label font and font size
- Full Alerts group: master switch, Popup / Push / Email, per-type switches
How to Use
Attach the indicator to any symbol and any timeframe — forex, gold, indices, crypto. A Buy EG Overlap marks a price area where a bearish attempt failed AND a bullish engulfing was confirmed on top of it — double evidence in one zone, watch it as a high-interest demand area. A Sell EG Overlap is the mirror supply area. This indicator completes the RWBTradeLab engulfing family: the Engulfing Detector shows the pattern, the Failed Zone shows its fate, and the Overlap Zone shows where both stories collide. For best results combine with higher-timeframe structure and your own trade plan.
Important Notes
- Push notifications require your MetaQuotes ID in MT5 (Tools -> Options -> Notifications); email alerts require SMTP settings
- Alerts work while the terminal is running
- Default box colors are tuned for dark charts — all colors are fully adjustable for light themes
- This indicator is a pattern-analysis tool, not financial advice. Trading involves risk — always use proper risk management
Creator: RWBTradeLab
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