Engulfing Candle Pattern (Strict)

Indicator Name :

Engulfing Candle Pattern (Strict)

Purpose :

The Engulfing Candle Pattern Indicator is designed to identify and visually mark bullish and bearish engulfing patterns on a price chart. These patterns are powerful reversal signals in technical analysis, often used by traders to spot potential trend changes. The indicator ensures strict adherence to the definition of engulfing patterns, making it reliable for identifying high-probability setups.

What It Does :

Identifies Engulfing Patterns :

The indicator scans the price data for candles that meet the criteria of either a bullish engulfing or bearish engulfing pattern .
A bullish engulfing occurs when a green (bullish) candle fully engulfs the body and wicks of the previous red (bearish) candle and closes above its high.
A bearish engulfing occurs when a red (bearish) candle fully engulfs the body and wicks of the previous green (bullish) candle and closes below its low.

Marks Patterns Visually :

Bullish engulfing patterns are marked with a green upward triangle below the candle.
Bearish engulfing patterns are marked with a red downward triangle above the candle.
Optional labels ("Bullish" or "Bearish") provide additional context.

Highlights Candles :

Engulfing candles are highlighted with semi-transparent colors:
Green for bullish engulfing.
Red for bearish engulfing.

Ensures Strict Conditions :

The current candle must fully cover the entire body and wicks of the previous candle.
The current candle must close above the previous candle's high (for bullish) or below the previous candle's low (for bearish).