The Engulfing Bar Indicator recognizes the “Takeover” pattern when trading currencies and binary options.

The indicator is an improved version of this candlestick pattern.

The strategy is based solely on price action.

• Distance: the distance from the top or bottom of the candle to display the arrow, in pixels
• UseAlerts (true/false): enable alerts
• PopAlerts (true/false): alert in the pop-up window
• EmailAlerts (true/false): email alert
• PushAlers (true/false): push notifications
• SoundAlerts (true/false): sound alert
• SoundFile: Sound alert file

• To buy: wait for the bullish pattern in the support area after the
  bearish trend. Wait until the price breaks the maximum of the pattern (5
  pips above the maximum for H1 and larger timeframes, 1 pips for
  M5). As soon as the maximum is broken, enter the deal. You can also
  use a BUY STOP order set at 5 pips above the maximum of the
  candle (plus the spread). Set the stop loss below the minimum of the pattern. If the
  order is not activated on the next candle, the trade is canceled.
• For selling: wait for a bearish pattern in the resistance zone
  after the bullish trend. Wait until the price breaks the minimum of the pattern (5
  pips below the minimum for H1 and larger timeframes, 1 pips for
  M5). As soon as the minimum is broken, enter the deal. You can also
  use a SELL STOP order set at 5 pips below
  the candle minimum. Set the stop loss above the maximum of the pattern. If the order is not
  activated on the next candle, the trade is canceled.

[spoiler title=”Read More…”]

You can use the Fx Levels () indicator to display support and resistance levels when trading on a pattern.

We also suggest using the Naked Forex Big Shadow indicator,
which is an improved version of the Engulfing Bar:

The indicator can be used on any timeframe and on any instruments: forex, futures, commodities and stocks.

[/spoiler]