RickSimpson

Next-Gen Engulfing Retracement

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OVERVIEW

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!
Release Notes:
-Code cleaning.
Release Notes:
-Minor improvement.
Release Notes:
-Removed HTF.
-Updated default settings.
Release Notes:
-Minor improvement.
Release Notes:
-Style improvement.
Release Notes:
-Minor improvement.
Release Notes:
-Added 'Average' layout type option.
Release Notes:
'Average' layout mode has been removed cause of a bug. It will be back until it will be fix.
Release Notes:
-Added 'Average' layout type option. (again)
Release Notes:
-'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.
Release Notes:
-Code cleaning*
Release Notes:
-Price added on labels.
Release Notes:
-Minor improvements.
-Default Engulfing color has been set to Red for Bearish and Green for Bullish Engulfing.
Release Notes:
-Lines Price alignement correction.
Release Notes:
-Minor improvement

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