Engulfing Failure & Overlap Zones [HASIB]

🧭 Overview

Engulfing Failure & Overlap Zones [HASIB] is a smart price action–based indicator that detects failed engulfing patterns and overlapping zones where potential liquidity traps or reversal setups often occur.
It’s designed to visually highlight both bullish and bearish failed engulfing areas with clean labels and zone markings, making it ideal for traders who follow Smart Money Concepts (SMC) or price action–driven trading.

⚙️ Core Concept

Engulfing patterns are powerful reversal signals — but not all of them succeed.
This indicator identifies:

When a Buy Engulfing setup fails and overlaps with a Sell Engulfing zone, and

When a Sell Engulfing setup fails and overlaps with a Buy Engulfing zone.

These overlapping areas often represent liquidity grab zones, reversal points, or Smart Money manipulation levels.

🎯 Key Features

✅ Detects both Buy and Sell Engulfing Failures
✅ Highlights Overlapping (OL) zones with colored rectangles
✅ Marks Buy EG OL / Sell EG OL labels automatically
✅ Fully customizable visuals — colors, padding, and zone styles
✅ Optimized for both scalping and swing trading
✅ Works on any timeframe and any instrument

⚡ How It Helps

Identify liquidity traps before reversals happen

Visually see Smart Money overlap zones between opposing engulfing structures

Strengthen your entry timing and confirmation zones

Combine with your own SMC or ICT-based trading setups for higher accuracy

📊 Recommended Use

Use on higher timeframes (e.g., M15, H1, H4) to confirm major liquidity zones.

Use on lower timeframes (e.g., M1–M5) for precision entries inside the detected zones.

Combine with tools like Order Blocks, Break of Structure (BOS), or Fair Value Gaps (FVG).

🧠 Pro Tip

When a failed engulfing overlaps with an opposite engulfing zone, it often signals market maker intent to reverse price direction after liquidity has been taken. Watch these zones closely for strong reaction candles.