Engulfing Trading System
- Indicatori
- Ich Khiem Nguyen
- Versione: 1.0
- Attivazioni: 10
Detects 2-bar reversal patterns where the engulfing candle's body completely wraps the prior setup candle's body. Covers both Bullish Engulfing (bottom reversal after downtrend) and Bearish Engulfing (top reversal after uptrend). Each signal is scored by 4 weighted quality factors: engulf ratio, body/ATR significance, close position, and trend context.
This indicator identifies Engulfing formations on any symbol and timeframe, draws automated Entry/SL/TP trading levels, and tracks signal performance in real-time. Includes a multi-timeframe scanner monitoring up to 150 symbols across 8 timeframes simultaneously.
Introductory Pricing: This indicator is offered at introductory pricing that increases based on sales milestones. The current price is $49. After 10 sales, the price increases to $59. After 30 sales, it increases to $69. After 60 sales, the final price of $79 takes effect. All buyers receive the same full-featured indicator regardless of purchase price
Included Tools
Each Engulfing Trading System purchase includes access to the following companion tools at no additional cost:
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Smart Trend Consensus MT5 — Multi-timeframe trend agreement indicator. Displays trend direction across up to 7 timeframes on a single dashboard. Helps filter Engulfing signals by confirming trend alignment before entry. https://www.mql5.com/en/market/product/160553
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Price Volume Distribution MT5 — Volume profile and price distribution analysis. Identifies high-volume price zones where institutional orders cluster. Useful for confirming support/resistance confluence with engulfing pattern locations. https://www.mql5.com/en/market/product/160452
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Engulfing Trading System EA — Automated signal execution based on indicator output buffers. Reads Entry/SL/TP levels from the indicator and places pending orders automatically. Configurable lot sizing, risk per trade, and session filters. (Delivered via MQL5 private message after purchase confirmation.)
Contact the author through MQL5 messaging after purchase to receive access to the companion tools.
How Engulfing Detection Works
The indicator scans for 2-bar reversal structures on each completed bar:
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Setup Candle — A candle with a meaningful body (at least 20% of its range) moving in the current trend direction. Body must also meet a minimum ATR ratio (default 0.15x) to confirm it represents real market participation.
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Engulfing Candle — The next candle must open beyond one extreme of the setup body and close beyond the other extreme, completely wrapping the setup body. The engulfing body must meet a minimum ATR ratio (default 0.30x) to confirm significant momentum.
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Entry — Two modes available:
- Conservative: pending order at the engulfing candle high (buy) or low (sell) plus an ATR buffer (default 0.05x)
- Aggressive: enter at the engulfing candle close price
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Stop Loss — Placed at the pattern low (bullish) or pattern high (bearish) with an ATR buffer (default 0.10x). Alternative methods: Donchian Channel or ATR multiplier.
4-Factor Quality Scoring evaluates:
- Engulf ratio: how much larger the engulfing body is vs setup body (weight 30%, ideal 1.20-2.50x)
- Body/ATR: engulfing body significance relative to volatility (weight 25%, ideal 0.50-1.50x)
- Close position: where the engulfing candle closes within its range (weight 20%, ideal 0.60-0.95)
- Trend context: directional alignment score from trend analysis (weight 25%, ideal 0.50-1.00)
Pattern-Specific Settings:
- Entry Mode: Conservative (breakout) or Aggressive (close)
- Entry Buffer (ATR multiple for conservative mode)
- Min Engulfing Body/ATR threshold
- Min Setup Body/ATR threshold
- Min Body/Range ratio for both candles
- Require Trend Bars count (0=disable)
- Trend SMA Period (0=disable)
Automated Trading Levels
Every detected pattern automatically draws Entry, Stop Loss, and up to 4 Take Profit levels (TP1-TP4) based on configurable Risk:Reward ratios. Price labels display pip distance and R:R ratio for each level.
Stop Loss methods:
- Donchian Channel (structure-based, adapts to volatility)
- ATR Multiplier (fixed distance based on Average True Range)
Default R:R targets: TP1=0.5R, TP2=1.0R, TP3=1.5R, TP4=2.0R (all customizable, set to 0 to disable any level).
Live Signal Tracking
The indicator tracks each signal from detection through completion:
- Pending: waiting for entry price to be hit
- Active: entry hit, tracking toward TP or SL
- Finished: TP or SL reached
A dotted tracking path shows the actual price movement after each signal. Profit/loss labels appear at hit points. Zone fill rectangles visualize risk and reward areas on the chart.
Donchian Channel Trailing Stop
An optional trailing stop system that automatically adjusts the stop loss as price moves favorably:
- Uses the Donchian Channel (lowest low / highest high over N bars)
- Activates after price reaches a configurable R:R threshold
- Locks at breakeven when TP1 is hit
- Visual color changes: orange (trailing buy), yellow (trailing sell), green (locked at breakeven)
Multi-Timeframe Scanner (150 Symbols x 8 Timeframes)
Monitor patterns across the entire market from a single chart:
- Scans up to 150 symbols from your Market Watch
- Checks 8 timeframes: M1, M5, M15, M30, H1, H4, D1, W1
- Live dashboard panel shows detected signals with quality scores
- Configurable batch scanning to control CPU usage
- Independent alert system for scanner-detected signals
Scanner can operate in two modes:
- Current Symbol MTF: scans only the chart symbol across all timeframes
- Full Market Scan: scans all Market Watch symbols across selected timeframes
Market Structure Analysis (BOS / CHOCH)
Built-in Break of Structure and Change of Character detection:
- Identifies swing highs and lows using fractal analysis
- Labels swing sequences: HH (Higher High), HL (Higher Low), LH (Lower High), LL (Lower Low)
- Detects BOS (trend continuation) and CHOCH (trend reversal) events
- Configurable timeframe and sensitivity
- Visual lines and labels on chart
Multi-Layer Signal Filtering
Five independent filters to reduce noise and increase signal quality:
- Direction Filter — Only allow signals aligned with the current trend direction (auto-detects from market structure, or set manually)
- Extreme Zone Filter — Block signals near overbought/oversold zones using Donchian Channel position thresholds
- Stop Hunt Filter — Validate that signals originate from genuine liquidity sweeps of prior swing levels
- Signal Zone Filter — Require signals to form near meaningful market structure events (BOS, CHOCH, swing levels)
- Opposite Signal Filter — Prevent conflicting buy/sell signals from appearing simultaneously
Each filter can be enabled/disabled independently.
4-Channel Alert System
Never miss a signal with multi-channel notifications:
- Desktop Popup Alert (MT5 Alert dialog)
- Sound Alert (customizable sound file)
- Mobile Push Notification (MT5 mobile app)
- Configurable for Entry hits, TP hits, and SL hits separately
Anti-spam: once-per-signal deduplication with configurable cooldown period.
Signal Statistics Dashboard
A draggable panel displaying real-time performance metrics:
- Total signals detected
- Win/Loss count and Win Rate percentage
- Active vs completed signal counts
- Customizable position, font size, and row height
Professional Chart Themes
Built-in color schemes for comfortable chart reading:
- Dark Muted (default) — reduced eye strain
- Dark — high contrast
- Light — bright background
- Custom — full color control for every chart element
Original chart colors automatically restored when indicator is removed.
EA Signal Buffers
Indicator outputs are available as data buffers for Expert Advisors:
- Buffer 0: Signal direction (1=Buy, -1=Sell)
- Buffer 1: Entry price
- Buffer 2: Stop Loss price
- Buffer 3-6: TP1-TP4 prices
- Buffer 7: Quality score
Connect your EA to read these buffers for automated trade execution.
Recommended Settings
- Timeframes: M15, H1, H4, D1 (engulfing signals carry more weight on higher timeframes where institutional participation is visible)
- Symbols: Works on all Forex pairs, Gold (XAUUSD), Indices, and Crypto pairs
- Account type: Any (demo or live)
- Minimum bars on chart: 500+ for reliable market structure analysis
Installation
- Download and place in your Indicators folder
- Drag onto any chart
- Enable "Allow notifications" in MT5 if using push alerts
- Choose Entry Mode (Conservative or Aggressive) based on your trading style
- Adjust Quality Score threshold to control signal frequency (lower = more signals, higher = fewer but stronger signals)
Notes
- This indicator does NOT repaint — signals are confirmed on bar close only
- All calculations use completed bars (bar index 1+) for stability
- Scanner operates asynchronously to prevent chart lag
- Memory-optimized for 24/7 continuous operation
Documentation and User Guides
Detailed guides for each feature are available on the MQL5 Blog:
- Installation and Quick Start: [LINK]
- Signal Types, States, and Lifecycle: [LINK]
- Risk/Reward and Stop Loss Configuration: [LINK]
- Quality Filter: [LINK]
- Extreme Zone Filter: [LINK]
- Stoploss Hunt Filter: [LINK]
- Signal Zone Filter: [LINK]
- Opposite Signal Filter: [LINK]
- Direction Filter: [LINK]
- Market Structure (BOS / CHOCH): [LINK]
- Trailing Stop Loss: [LINK]
- MTF Scanner and Dashboard: [LINK]
- Visualization, Zone Fill, and Signal Dashboard: [LINK]
- Chart Theme Configuration: [LINK]
- Alerts and Notifications: [LINK]
- EA Signal Configuration: [LINK]
All guides include parameter explanations, chart examples, and recommended settings for each feature.
Support
- Product comments section on this page
- Direct message to the author via MQL5
- Response time: within 24 hours
