As it is known, the Engulfing candlestick patten often turns out to be a reversal point or at least indicates the start of a retracement.
However, an entry point at the end of a patten formation (closure of the engulfing candle) is not always the most beneficial and safe. Lack of distinct target levels and rules does not allow applying this pattern in systematic trading as a separate and independent signal.
This indicator allows identifying the Engulfing reversal candlestick pattern. It doesn't simply identify the pattern, but also confirms the reversal by the location of the price and volume.
If this pattern was formed in the market, the indicator's algorithm checks the price location relative to the nearest support/resistance level. Determines the amount of ticks that has "passed" during the current candle.
If a "bearish engulfing pattern" was formed, the price is near to a local minimum (depending on the selected timeframe) and the tick volumes for BID prices exceed the tick volumes for ASK prices, such signal is defined as a buy signal. The indicator draws an arrow in the indicated direction and plays an audio alert (optional).
- The number of candles to find engulfing - the number of bars to search for the pattern
- Show Indicator Info - show/hide information about the currency pair
- Info Corner - Don't show info, Left upper, Right upper, Left lower, Right lower
- Color Of Information - where to show information
- Font Type - font type
- Font Size
- Use Alert - enable alerts
- Use E-mail Notification - allow alerting by email