Engulfing Failed Zone Detector by RWBTradeLab

Engulfing Failed Zone Detector by RWBTradeLab
A clean, non-repainting tool that focuses on one thing only: showing where strong engulfing patterns failed and the market broke through their base.

What this indicator does

This script automatically scans for confirmed engulfing patterns (Regular & E-Regular) and then tracks where those structures are invalidated.

It highlights two types of failure zones:

1. Buy Engulfing Failed
* A bullish engulfing pattern forms (Regular or E-Regular).
* Later, a bearish candle closes below the base low of that engulfing.
* The zone from the base candle to the failure candle is marked as Buy EG Failed.
2. Sell Engulfing Failed
* A bearish engulfing pattern forms (Regular or E-Regular).
* Later, a bullish candle closes above the base high of that engulfing.
* The zone from the base candle to the failure candle is marked as Sell EG Failed.

Only the first clear failure after each engulfing is drawn, keeping the chart clean and readable.


Visuals on chart
1. A rectangle (box) is drawn from the engulfing base candle to the failure candle.
2. Labels are placed automatically:
* Buy EG Failed (below the zone)
* Sell EG Failed (above the zone)
3. Label distance from the zone is controlled by Text Offset from Box (%).
4. Separate color controls for:
* Buy Engulfing Failed Box Color
* Sell Engulfing Failed Box Color

The label style matches Engulfing Detector by RWBTradeLab for a consistent visual experience.

Alerts

Built-in alerts trigger only on confirmed bar close when a new failure completes:
* Buy EG Failed
* Sell EG Failed
Each alert message includes:
* Brand prefix: RWBTradeLab
* Price
* Time
* Ticker

Perfect for linking with bots, webhooks or alert-based trade management.

Key settings
Candle Length (closed candles)
* Defines how many recent confirmed candles are scanned (the live bar is excluded).
Display toggles
* Buy Engulfing Failed
* Sell Engulfing Failed
* Text
Turn each element ON/OFF to control how much information you want on the chart.
Text Offset from Box (%)
* Controls how far the label is placed from the failed zone, with a safe minimum to keep labels clear and readable.

Non-repainting confirmation

* All detection and alerts are based on closed candles only.
* No signals from the running candle, no repaint tricks.
* Once a failure zone appears, it stays fixed.

Best use

Failed engulfing zones can reveal:
* Broken demand/supply zones
* Liquidity grabs where “smart money” flushed traders out
* Strong momentum shifts after a failed reversal attempt
* Levels where continuation or clean retests often occur

Works on any symbol and timeframe. For best results, combine with:
* Higher timeframe structure
* Key support/resistance or supply/demand mapping
* Your own confirmation tools and risk management

Disclaimer
This indicator is a technical pattern-detection tool, not financial advice. Trading involves risk. Always confirm signals with your own analysis and use proper risk management.

Creator: RWBTradeLab
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