Engulfing Bar Indicator recognizes the “Engulfing” 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.
Indicator input parameters:
- Distance: the distance from the top or bottom of the candle to display the arrow, in pixels
- UseAlerts (true/false): to enable alerts
- popalerts (true/false): alert in the popup window
- emailalerts (true/false): email alert
- pushalers (true/false): push notifications
- soundalerts (true/false): sound alert
- soundfile: The sound alert file
- To buy: wait for the bullish pattern in the support zone after the bearish trend. Wait until the price breaks the pattern’s maximum (5 pips above the maximum for H1 and larger timeframes, 1 pips for M5). As soon as the maximum is broken, enter the trade. You can also use a BUY STOP order set 5 pips above the maximum of the candle (plus the spread). Set the stop loss below the low of the pattern. If the order is not activated on the next candle, the trade is canceled.
- To sell: wait for a bearish pattern in the resistance zone after the bullish trend. Wait until the price breaks the pattern’s minimum (5 pips below the minimum for H1 and larger timeframes, 1 pips for M5). As soon as the minimum is broken, enter the trade. You can also use a SELL STOP order set 5 pips below the candle’s low. Set the stop loss above the pattern’s maximum. If the order is not activated on the next candle, the trade is canceled.
You can use the Fx Levels indicator (https://www.mql5.com/ru/market/product/22547) 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 Engulfing Bar: https://www.mql5.com/ru/market/product/22785
The indicator can be used on any timeframe and on any instruments: forex, futures, commodities and stocks.