Liquidity engulfing candles (LEC) are a variant of a common candlestick pattern: engulfing candles but with a couple extra conditions applied. These conditions expect highs/lows to be taken out in order to show a continuation or reversal signal.
Filter 1: Stop Hunt Wick Filter This filter requires the candle to wick into the prior candles high or low ( bullish = wick below prior candle lows). This is the stop hunt.
Filter 2: Close Filter This filter requires the candle to close above or below above the prior candle ( bullish = close above prior candle high). This is the confirmation.
This idea was introduced to me by @attrk632. Thanks, mate!
This looks great, I can't wait to try it! The filters you added seem to work great. I'm using this on forex btw.
michaelkinende
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Hello, is it possible to make this back to back bull candles or back to back bear candles?
upslidedown
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@michaelkinende, a back to back candle wouldn't be able to engulf because engulfing logic typically looks at the body. You'd have to substantially modify the engulfing logic to detect in order to show some kind of double engulf. My guess would be those scenarios would typically be pinbars that get engulfed by a move of some sort, and since pinbars don't have a substantial body to judge bullish or bearish behavior that makes it challenging. Feel free to clarify here or pm/reach out to me via social channels privately if there's something I'm missing with your request , I'm always up for exploring new ideas.
michaelkinende
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@upslidedown, alright, ive reached out on twitter with the link provided in the description
vova_fort
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Good afternoon. You can add a function to hide old icons, for example, leave only the last three pieces
upslidedown
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@vova_fort, while that's a pretty easy change (switch to labels array and only let max 7 items populate the array) it actually would totally violate reviewing historical candles... so not something I'd be willing to add to this public script. Sorry.