If you follow my work closely, you know my obsession with OrderBlocks and Retracements. We will reuse the same logic, but using candle engulfments and candle engulfment reversals. It is the latter that we will interpret as OrderBlocks, and candle engulfments as buy or sell signals.Instead of using the price and the average of the candles, here we prefer to use 4 exponential moving averages over 4 different periods with a true range for detecting volatility and determining if a candle should be considered engulfed or not. (note : if you know the principle of candle engulfment you should know that a bullish engulfment does not necessarily mean a buy signal).
█ HOW TO INTERPRET?
1 • We use last detected 'Bearish/Bullish Reversal Engulfing Candle' as an Retracement Level. (Keep in mind Historical Retracements with extended lines is still useful and can still have an impact on the actual trend). 2 • We use 'Bearish/Bullish Candle' as confirmation of entry point. 3 • You can play with the 'Maximum Volatility' value or the 'True Range' Multiplier value to filter detected engulfing as you want. 4 • HTF and Auto HTF option available. 5 • Everything is customizable in settings (show inputs, colors, lines size etc...) 6 • Alerts is available for Engulfing Candle and Crossing Lines.
█ NOTES
-This script is not beginner's Level and is intended for Traders with advanced knowledge of Candlestick Patterns and the work of Michael j. Huddleston on the OrderBlocks.
Good Trade everyone and remember, risk management remains the most important!
Catatan Rilis
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-Code cleaning.
Catatan Rilis
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-Minor improvement.
Catatan Rilis
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-Removed HTF. -Updated default settings.
Catatan Rilis
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-Minor improvement.
Catatan Rilis
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-Style improvement.
Catatan Rilis
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-Minor improvement.
Catatan Rilis
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-Added 'Average' layout type option.
Catatan Rilis
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'Average' layout mode has been removed cause of a bug. It will be back until it will be fix.
Catatan Rilis
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-Added 'Average' layout type option. (again)
Catatan Rilis
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-'Reversal Engulfing Candle' is now simply called 'Engulfing'. -'Engulfing Candle' is now simply called 'Strong Engulfing'. -Algorithm gas been improved and settings is more simpler to interpret now. -Script is now using ATR instead of EMA to find Engulfing. -Code cleaning.
Catatan Rilis
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-Code cleaning*
Catatan Rilis
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-Price added on labels.
Catatan Rilis
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-Minor improvements. -Default Engulfing color has been set to Red for Bearish and Green for Bullish Engulfing.
@d.umesh, Am actually working on improvement on this script; But by the 'old version was better', did you mean the one with HTF? Thanks for your interest.
cooney_s
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Excellent addition to the library! Thanks for sharing!
Za_Eti
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Excellent! Thank you
TalentaT
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Hi, Thanks for share, what do u think to confirm the IOB or to antecipate the signal checking volume and divergences?
RickSimpson
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@marcellollp, Hello, cause we already use Engulfing Candle to anticipate the Reversal Signal, then we look to different TF to search for the right retracement level at the moment where you’re looking your chart. If you not find any entry point on your favorite TF you still can disable HTF option to have real-time information corresponding to your timeframe. Hope this will be useful to you. Thanks