Next-Gen Engulfing Retracement
█ OVERVIEW
If you follow my work closely, you know my obsession with OrderBlocks and Retracements. We will reuse the same logic,
but using candle engulfments and candle engulfment reversals. It is the latter that we will interpret as OrderBlocks, and candle engulfments as
buy or sell signals.Instead of using the price and the average of the candles, here we prefer to use 4 exponential moving averages over 4 different
periods with a true range for detecting volatility and determining if a candle should be considered engulfed or not.
(note : if you know the principle of candle engulfment you should know that a bullish engulfment does not necessarily mean a buy signal).
█ HOW TO INTERPRET?
1 • We use last detected 'Bearish/Bullish Reversal Engulfing Candle' as an Retracement Level.
(Keep in mind Historical Retracements with extended lines is still useful and can still have an impact on the actual trend).
2 • We use 'Bearish/Bullish Candle' as confirmation of entry point.
3 • You can play with the 'Maximum Volatility' value or the 'True Range' Multiplier value to filter detected engulfing as you want.
4 • HTF and Auto HTF option available.
5 • Everything is customizable in settings (show inputs, colors, lines size etc...)
6 • Alerts is available for Engulfing Candle and Crossing Lines.
█ NOTES
-This script is not beginner's Level and is intended for Traders with advanced knowledge of Candlestick Patterns and the work of Michael j. Huddleston on the OrderBlocks.
Good Trade everyone and remember, risk management remains the most important!
If you follow my work closely, you know my obsession with OrderBlocks and Retracements. We will reuse the same logic,
but using candle engulfments and candle engulfment reversals. It is the latter that we will interpret as OrderBlocks, and candle engulfments as
buy or sell signals.Instead of using the price and the average of the candles, here we prefer to use 4 exponential moving averages over 4 different
periods with a true range for detecting volatility and determining if a candle should be considered engulfed or not.
(note : if you know the principle of candle engulfment you should know that a bullish engulfment does not necessarily mean a buy signal).
█ HOW TO INTERPRET?
1 • We use last detected 'Bearish/Bullish Reversal Engulfing Candle' as an Retracement Level.
(Keep in mind Historical Retracements with extended lines is still useful and can still have an impact on the actual trend).
2 • We use 'Bearish/Bullish Candle' as confirmation of entry point.
3 • You can play with the 'Maximum Volatility' value or the 'True Range' Multiplier value to filter detected engulfing as you want.
4 • HTF and Auto HTF option available.
5 • Everything is customizable in settings (show inputs, colors, lines size etc...)
6 • Alerts is available for Engulfing Candle and Crossing Lines.
█ NOTES
-This script is not beginner's Level and is intended for Traders with advanced knowledge of Candlestick Patterns and the work of Michael j. Huddleston on the OrderBlocks.
Good Trade everyone and remember, risk management remains the most important!
Notes de version:
-Code cleaning.
Notes de version:
-Minor improvement.
Notes de version:
-Removed HTF.
-Updated default settings.
-Updated default settings.
Notes de version:
-Minor improvement.
Notes de version:
-Style improvement.
Notes de version:
-Minor improvement.
Notes de version:
-Added 'Average' layout type option.
Notes de version:
'Average' layout mode has been removed cause of a bug. It will be back until it will be fix.
Notes de version:
-Added 'Average' layout type option. (again)
Notes de version:
-'Reversal Engulfing Candle' is now simply called 'Engulfing'.
-'Engulfing Candle' is now simply called 'Strong Engulfing'.
-Algorithm gas been improved and settings is more simpler to interpret now.
-Script is now using ATR instead of EMA to find Engulfing.
-Code cleaning.
-'Engulfing Candle' is now simply called 'Strong Engulfing'.
-Algorithm gas been improved and settings is more simpler to interpret now.
-Script is now using ATR instead of EMA to find Engulfing.
-Code cleaning.
Notes de version:
-Code cleaning*
Notes de version:
-Price added on labels.
Notes de version:
-Minor improvements.
-Default Engulfing color has been set to Red for Bearish and Green for Bullish Engulfing.
-Default Engulfing color has been set to Red for Bearish and Green for Bullish Engulfing.
Notes de version:
-Lines Price alignement correction.
Notes de version:
-Minor improvement
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