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
