Bullish/Bearish Engulfing with Ichimoku & VWMA

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Key Features:
Bullish and Bearish Engulfing Patterns:

Bullish Engulfing: A green "BUY" label is displayed below the candle when a bullish engulfing pattern is detected. This pattern occurs when a smaller bearish candle is followed by a larger bullish candle that completely engulfs the previous candle's body.

Bearish Engulfing: A red "SELL" label is displayed above the candle when a bearish engulfing pattern is detected. This pattern occurs when a smaller bullish candle is followed by a larger bearish candle that completely engulfs the previous candle's body.

Ichimoku Cloud:

The Ichimoku Cloud is a comprehensive indicator that provides insights into support/resistance, trend direction, momentum, and potential buy/sell signals.

The cloud consists of:

Conversion Line (Tenkan-sen): A short-term moving average.

Base Line (Kijun-sen): A medium-term moving average.

Lead Line 1 (Senkou Span A): The midpoint of the Conversion Line and Base Line, plotted 26 periods ahead.

Lead Line 2 (Senkou Span B): A long-term moving average, plotted 26 periods ahead.

Lagging Span (Chikou Span): The current closing price plotted 26 periods behind.

The cloud is filled with a teal color when bullish and an orange color when bearish.

Volume Weighted Moving Average (VWMA):

The VWMA is plotted to show the average price weighted by volume, providing a clearer picture of price trends based on trading activity.

It helps confirm the strength of a trend by incorporating volume data.

Alerts:

Custom alerts are set up for both bullish and bearish engulfing patterns, allowing traders to receive notifications when these patterns occur.

How to Use:
Engulfing Patterns:

Look for "BUY" or "SELL" labels on the chart to identify potential reversal opportunities.

Use these signals in conjunction with other indicators for confirmation.

Ichimoku Cloud:

Use the cloud to determine the overall trend:

Bullish Trend: Price is above the cloud, and the cloud is teal.

Bearish Trend: Price is below the cloud, and the cloud is orange.

The Conversion Line and Base Line can act as dynamic support/resistance levels.

VWMA:

Use the VWMA to confirm the strength of the trend. A rising VWMA indicates bullish momentum, while a falling VWMA indicates bearish momentum.

Combining Signals:

For a stronger buy signal, look for:

A Bullish Engulfing pattern.

Price above the Ichimoku Cloud.

A rising VWMA.

For a stronger sell signal, look for:

A Bearish Engulfing pattern.

Price below the Ichimoku Cloud.

A falling VWMA.

Input Parameters:
Ichimoku Cloud:

Conversion Line Periods: Default is 9.

Base Line Periods: Default is 26.

Lagging Span 2 Periods: Default is 52.

Displacement: Default is 26.

VWMA:

VWMA Length: Default is 20.

Visualization:
Bullish Engulfing: Green "BUY" label below the candle.

Bearish Engulfing: Red "SELL" label above the candle.

Ichimoku Cloud: Teal (bullish) or orange (bearish) shaded area.

VWMA: Purple line on the chart.

Alerts:
Bullish Engulfing Alert: Triggers when a bullish engulfing pattern is detected.

Bearish Engulfing Alert: Triggers when a bearish engulfing pattern is detected.

Benefits:
Combines candlestick patterns, trend analysis, and volume-weighted indicators for a comprehensive trading strategy.

Provides clear visual cues for potential buy/sell opportunities.

Customizable parameters to suit different trading styles and timeframes.

This script is ideal for traders who want to combine candlestick pattern recognition with advanced technical indicators like the Ichimoku Cloud and VWMA for a more robust trading approach