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Engulfing Candle

BEST Ultimate Engulfing ScreenerHello traders Continuing deeper and stronger with the screeners serie. I keep getting requests private messages and requests saying that screeners aren't possible with TradingView. My answer is always... "Reallyyy ??" (I never find a better answer than that...) I'll publish a few screeners just for everyone to understand what can be done with Pinescript. We don't have to wait for TradingView to allow screener based on custom indicator - we can build our own ^^ I - What is an engulfing pattern Let's start with a screener to check for a very famous candlestick pattern called engulfing Engulfing candles tend to signal a reversal of the current trend in the market. This specific pattern involves two candles with the latter candle ‘engulfing’ the entire body of the candle before it. The engulfing candle can be bullish or bearish depending on where it forms in relation to the existing trend Source and more info here These engulfing candles indicate a strong shift in direction, and when combined with observation of the price-trending direction that precedes it, this shift creates the opportunity for a trading strategy. II - How did I set the screener I added an optional filter being Price vs SMA. The idea is to select only the engulfing whenever the price also breaks an SMA - this usually translates a stronger move - but could sometimes give the signal too late (#meh #trading #ain't #easy) The visual signals are as follow: - square: whenever the engine detects an engulfing and an SMA breakout - triangle: the engine only detects an engulfing - dash: none of the above Then the colors are: - orange when bullish - yellow when bearish - aqua/dash when none of the above Cool Hacks "But sir... what can we do with only 5 instruments for a screener?" I agree not much but... even if I allow only 5 instruments per indicator - nothing prevents you from adding multiple times the same indicator and changing the selected instruments for each. I also show why the SPX500 gave a yellow triangle (bearish engulfing) and how to match it with the screener. => imgur.com Wishing you all the BEST trading Dave
Pine Script® indicator
by Daveatt
8
Bull Bear 180 by Oliver VelezThis script detects an event created by Oliver Velez is called Bull / Bear 180, in the following images the event is detailed: - The size of the control bar can be set compared to a number of previous bars - The minimum % of the control bar body can be set - You can filter by trend - Possibility of seeing fast and slow media with direction detection and color change - Various graphic settings - Event alerts To enjoy! A thumbs up if you like me!
Pine Script® indicator
by Dreadblitz
13
PivotBoss TriggersI have collected the four PivotBoss indicators into one big indicator. Eventually I will delete the individual ones, since you can just turn off the ones you don't need in the style controller. Cheers. Wick Reversal When the market has been trending lower then suddenly forms a reversal wick candlestick , the likelihood of a reversal increases since buyers have finally begun to overwhelm the sellers. Selling pressure rules the decline, but responsive buyers entered the market due to perceived undervaluation. For the reversal wick to open near the high of the candle, sell off sharply intra-bar, and then rally back toward the open of the candle is bullish , as it signifies that the bears no longer have control since they were not able to extend the decline of the candle, or the trend. Instead, the bulls were able to rally price from the lows of the candle and close the bar near the top of its range, which is bullish - at least for one bar, which hadn't been the case during the bearish trend. Essentially, when a reversal wick forms at the extreme of a trend, the market is telling you that the trend either has stalled or is on the verge of a reversal. Remember, the market auctions higher in search of sellers, and lower in search of buyers. When the market over-extends itself in search of market participants, it will find itself out of value, which means responsive market participants will look to enter the market to push price back toward an area of perceived value. This will help price find a value area for two-sided trade to take place. When the market finds itself too far out of value, responsive market participants will sometimes enter the market with force, which aggressively pushes price in the opposite direction, essentially forming reversal wick candlesticks . This pattern is perhaps the most telling and common reversal setup, but requires steadfast confirmation in order to capitalize on its power. Understanding the psychology behind these formations and learning to identify them quickly will allow you to enter positions well ahead of the crowd, especially if you've spotted these patterns at potentially overvalued or undervalued areas. Fade (Extreme) Reversal The extreme reversal setup is a clever pattern that capitalizes on the ongoing psychological patterns of investors, traders, and institutions. Basically, the setup looks for an extreme pattern of selling pressure and then looks to fade this behavior to capture a bullish move higher (reverse for shorts). In essence, this setup is visually pointing out oversold and overbought scenarios that forces responsive buyers and sellers to come out of the dark and put their money to work-price has been over-extended and must be pushed back toward a fair area of value so two-sided trade can take place. This setup works because many normal investors, or casual traders, head for the exits once their trade begins to move sharply against them. When this happens, price becomes extremely overbought or oversold, creating value for responsive buyers and sellers. Therefore, savvy professionals will see that price is above or below value and will seize the opportunity. When the scared money is selling, the smart money begins to buy, and Vice versa. Look at it this way, when the market sells off sharply in one giant candlestick , traders that were short during the drop begin to cover their profitable positions by buying. Likewise, the traders that were on the sidelines during the sell-off now see value in lower prices and begin to buy, thus doubling up on the buying pressure. This helps to spark a sharp v-bottom reversal that pushes price in the opposite direction back toward fair value. Engulfing (Outside) Reversal The power behind this pattern lies in the psychology behind the traders involved in this setup. If you have ever participated in a breakout at support or resistance only to have the market reverse sharply against you, then you are familiar with the market dynamics of this setup. What exactly is going on at these levels? To understand this concept is to understand the outside reversal pattern. Basically, market participants are testing the waters above resistance or below support to make sure there is no new business to be done at these levels. When no initiative buyers or sellers participate in range extension, responsive participants have all the information they need to reverse price back toward a new area of perceived value. As you look at a bullish outside reversal pattern, you will notice that the current bar's low is lower than the prior bar's low. Essentially, the market is testing the waters below recently established lows to see if a downside follow-through will occur. When no additional selling pressure enters the market, the result is a flood of buying pressure that causes a springboard effect, thereby shooting price above the prior bar's highs and creating the beginning of a bullish advance. If you recall the child on the trampoline for a moment, you'll realize that the child had to force the bounce mat down before he could spring into the air. Also, remember Jennifer the cake baker? She initially pushed price to $20 per cake, which sent a flood of orders into her shop. The flood of buying pressure eventually sent the price of her cakes to $35 apiece. Basically, price had to test the $20 level before it could rise to $35. Let's analyze the outside reversal setup in a different light for a moment. One of the reasons I like this setup is because the two-bar pattern reduces into the wick reversal setup, which we covered earlier in the chapter. If you are not familiar with candlestick reduction, the idea is simple. You are taking the price data over two or more candlesticks and combining them to create a single candlestick . Therefore, you will be taking the open, high, low, and close prices of the bars in question to create a single composite candlestick . Doji Reversal The doji candlestick is the epitome of indecision. The pattern illustrates a virtual stalemate between buyers and sellers, which means the existing trend may be on the verge of a reversal. If buyers have been controlling a bullish advance over a period of time, you will typically see full-bodied candlesticks that personify the bullish nature of the move. However, if a doji candlestick suddenly appears, the indication is that buyers are suddenly not as confident in upside price potential as they once were. This is clearly a point of indecision, as buyers are no longer pushing price to higher valuation, and have allowed sellers to battle them to a draw-at least for this one candlestick . This leads to profit taking, as buyers begin to sell their profitable long positions, which is heightened by responsive sellers entering the market due to perceived overvaluation. This "double whammy" of selling pressure essentially pushes price lower, as responsive sellers take control of the market and push price back toward fair value.
Pine Script® indicator
by ParCorn
7
TCG Price Shear PlusThe Chart Guys Price Shear and Abnormal Volume Alerts all rolled into 1 FREE indicator Based on TCG Price Shear V2 by urisma and Volume Spikes by OstapChester This powerful script combines Abnormal Volume Alerts with Price Shear which can be based on either ATR or % deviation from an ema, which intern can also be filtered by Abnormal Volume for less false signals. Look out for my next indicator which will be called TCG Price Shear Plus Scanner which will scan and alert you for several different assets at once! Enjoy
Pine Script® indicator
by Lij_MC
12
RSI Swing SignalThis indicator is a tool designed to be used with Steven Hart's RSI Exhaustion strategy. For more information google TheTradingChannel or look him up on YouTube :) The default RSI settings for this strategy are: RSI Overbought: 80 RSI Oversold: 20 Length: 7 When the RSI gets above 80, the line will turn red and the script will begin looking for a specific type of engulfing candle to go short. The same is true when the RSI gets below 20, but the line will turn green and look for longs. It is best used as a back-testing aid, but it can also be used to send emails or SMS alerts whenever the conditions are met. It can also be used as an alternative colored RSI indicator by removing the signals in the settings menu and changing the RSI parameters to whatever you normally use. This can aid in RSI divergence and overbought/sold strategies. Entries: The bright green and bright red lines represent the first type of engulfing candle. The dark green and red lines represent the second type of engulfing candle. Some pairs perform best with only one of these entries, while others work fine with both. This is a counter-trend or consolidation strategy, and is best used in combination with trend-continuation or trend-following strategies. As always, make sure you back-test it before you use it to trade as it works better on some pairs than others.
Pine Script® indicator
by ZenAndTheArtOfTrading
22
Reversal Candlestick Pattern With Trend IndentifierThis script help to identified popular candlestick pattern combined with trend identifier. Most script only focus on criteria of the pattern. Such as how much the length of the body compared to previous candle etc. Besides criteria of the candle, this script also considered the trend into the logic. For example bullish engulfing is a bullish reversal signal, which is only valid in a down trend. To identified trend, I'm using RSI. Normally, RSI less than 50 is considered a down trend, and RSI greater than 50 is considered up trend. In this script, you can customize the criteria of how much RSI is up trend and down trend. Default value RSI >= 55 is up trend, RSI <= 45 is down trend. Your feedback and suggestion is welcome. Supported pattern: White Marubozu (wm) Black Marubozu (bm) Hammer (h) Hanging Man (hm) Inverted Hammer (ih) Shooting Star (ss) Bullish Engulfing (e) Bearish Engulfing (e) Tweezer Bottom (tb) Tweezer Top (tt) Three White Soldiers (tws) Three Black Crows (tbc) Morning Star (ms) Evening Star (es) Three Inside Up (tiu) Three Inside Down (tid) Reference: babypips.com
Pine Script® indicator
by flintlockwood
8