Engulfing Trading System
- Indicatori
- Ich Khiem Nguyen
- Versione: 1.0
- Attivazioni: 10
Engulfing Trading System for MetaTrader 5
Engulfing Trading System is a price action indicator for MT5 designed to detect 2-bar reversal patterns where the second candle fully engulfs the prior candle’s body.
A detailed user guide is available on the author’s MQL5 Blog.
Additional updates are available through the author’s MQL5 Channel.
Depending on the current support policy, buyers may receive additional access to selected companion tools developed by the author.
Overview
Engulfing Trading System detects two-candle reversal structures in which the engulfing candle completely wraps the body of the setup candle.
This pattern can be used to identify strong reversal pressure after a directional move loses control.
All calculations are based on completed bars only.
Detection is non-repainting. Signal values do not change after the bar is closed.
The indicator can draw Entry, Stop Loss, and Take Profit levels directly on the chart and track signal progress after detection.
Detection Logic
The detection model evaluates each completed two-bar pattern through several structural conditions.
These conditions can include:
Meaningful body size on the setup candle
Full body engulfment by the second candle
Minimum engulfing body size relative to ATR
Minimum body-to-range ratio for both candles
Trend context before the pattern
Selectable conservative or aggressive entry logic
The indicator can detect both bullish and bearish Engulfing structures.
Patterns that do not meet the selected structural requirements are ignored.
Quality Evaluation
Each valid pattern can be evaluated through a multi-factor quality model.
The scoring process can include measurements such as:
Engulf ratio
Body size relative to ATR
Close position within the engulfing candle range
Trend context
Signals below the selected minimum threshold can be filtered out automatically.
Entry and trade planning
For confirmed setups, the indicator can project breakout levels using either conservative pending entry or aggressive close entry logic.
For each valid setup, the indicator can display:
Entry level
Stop Loss level
Up to four Take Profit levels
Risk and reward zones on the chart
Stop Loss can be calculated using pattern-based placement, Donchian Channel logic, or ATR-based logic.
An optional trailing stop based on Donchian logic is also available for users who want dynamic trade management after entry.
Filters and tools
Optional filters are available to reduce unnecessary signals.
These include Direction Filter, Extreme Zone Filter, Stop Hunt Filter, Signal Zone Filter, and Opposite Signal Filter.
The built-in scanner can monitor up to 150 symbols across 8 timeframes from a single chart.
The indicator also includes BOS and CHOCH labels, a signal dashboard, alert options, chart themes, and output buffers for Expert Advisor integration.
Recommended use
Recommended timeframes are M15, H1, H4, and D1 because engulfing patterns tend to carry more weight when market participation is clearer.
The indicator can be applied to Forex pairs, XAUUSD, indices, and crypto symbols, depending on broker data quality and symbol characteristics.
Loading sufficient chart history is recommended for more stable structure analysis.
MetaTrader 5 only.
No DLL calls.
No external WebRequest connections.
Important notes
This indicator is a technical analysis tool.
It does not guarantee trading results.
Users should test settings in their own environment and apply appropriate risk management.
Support is available through the product comments section or via MQL5 direct message.
