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Engulfing Bar Indicator for MT5

Engulfing Bar Indicator is a pattern recognition indicator for Forex and Binary Options.

The Engulfing Bar Indicator is a slightly enhanced pattern of the popular engulfing candle.

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


Inputs

  • Distance: distance in pixels relative to top or bottom of candle to display the arrow symbol
  • UseAlerts (true/false): enable alerts
  • PopAlerts (true/false): enable popup alerts
  • EmailAlerts (true/false): enable email alerts
  • PushAlers (true/false): enable push notifications
  • SoundAlerts (true/false): enable sound alerts
  • SoundFile: file to be used for sound alerts
  • TestSound (true/false): play selected sound at init time to check that sound is working fine


Trading rules

  • For BUY: wait for a bullish Engulfing Bar to print on a support zone after a downtrend. Wait for price to break high of the Engulfing Bar (5 pips above the high for H1 and higher time frames, 1 pip for M5 timeframe). Immediately enter 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 uptrend. Wait for price to break the low of the Engulfing (5 pips below the low for H1 and higher timeframes, 1 pip for M5 timeframe). Immediately enter in the trade once low is broken. You also can use a SELL STOP order placed 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.

To draw the support and resistance levels to trade with the Engulfing Bar, you can use the Fx Levels indicator: https://www.mql5.com/en/market/product/22547

We also offer the Naked Forex Big Shadow indicator which is an enhanced version of the Engulfing pattern and that might interest you: https://www.mql5.com/en/market/product/23074

The Engulfing Bar indicator can be used with any timeframe.

The Engulfing Bar indicator can be used with any class of asset: Forex, Binary Options, Futures, Commodities, Stocks.

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