Engulfing Confluence Scanner

Engulfing Confluence Scanner

Engulfing Confluence Scanner was built to solve a simple problem: on its own, the Engulfing pattern throws off too many false signals. The indicator takes that pattern and puts it to the test by cross-checking it against the direction of a trend moving average (configurable across ten variants, from SMA to Hull) and against MACD direction. Only when these three readings line up does the Engulfing candle get highlighted and trigger an alert.

On top of that sits the Reversal Pin Bar, an exhaustion pattern that catches moments where price decisively rejects a level, useful for picking up direction changes that the trend filter would otherwise tend to discard.

The result is a scanner that filters out noise instead of flagging every single Engulfing it comes across, leaving traders with only the setups where trend, momentum, and price action are all pointing the same way.

A few practical tips for using it:

Always check relative volatility (an ATR reading works well) before trusting a signal. An Engulfing that forms during a period of compressed volatility carries a different weight than one that forms right after a sharp range expansion.

On intraday timeframes false signals naturally increase, so it's worth limiting trading to the sessions with the highest liquidity.

The MACD filter can be turned off if you'd rather rely purely on the moving average's slope, which helps on instruments where MACD tends to be choppy.

The fractal levels, hidden by default, can still be enabled for anyone who wants to add a support/resistance reference to how they read the signals.