Engulfing and ATR-Imbalance [odnac]

27 sty

This Pine Script indicator combines two powerful concepts—Engulfing Candlestick Patterns and ATR Imbalance—to identify potential market reversal points with increased precision.

• Engulfing Candlestick Patterns:
  

  
  Bullish Engulfing: Identified when a candle closes higher than it opens, and it completely engulfs the previous candle (previous close is lower than the current open, and previous high is lower than the current close).
  
  Bearish Engulfing: Identified when a candle closes lower than it opens, and it completely engulfs the previous candle (previous close is higher than the current open, and previous low is higher than the current close).
  
  Bar Coloring: These patterns are highlighted with a customizable color (light gray by default) to make them easily identifiable.
  

• ATR-Based Imbalance:
  

  
  The Average True Range (ATR) is used to measure market volatility, and this script checks if the current candle’s range (difference between high and low) exceeds a defined multiple of the ATR, indicating a possible imbalance.
  
  Imbalance Detection: If the current candle’s range is greater than ATR * imbalance multiplier (default multiplier: 1.5), it is marked as an ATR imbalance.
  
  Bar Coloring: Candles with a significant imbalance (greater range than the ATR-based threshold) are highlighted in yellow, indicating an outlier or extreme price movement.
  

• Engulfing + ATR Imbalance:
  

  
  When both a Bullish Engulfing pattern and an ATR Imbalance are detected, a green triangle up is plotted below the bar, signaling a potential bullish reversal.
  Conversely, when both a Bearish Engulfing pattern and an ATR Imbalance occur, a red triangle down is plotted above the bar, signaling a potential bearish reversal.
  

• User Inputs:
  

  
  Engulfing Plot: Enable or disable the plotting of Engulfing Candles.
  
  ATR Length: Set the period used to calculate the ATR (default is 5).
  
  Imbalance Multiplier: Adjust the multiplier to define the threshold for ATR imbalance detection (default is 1.5).
  
  Bar Colors: Customizable color for both Engulfing candles and Imbalance candles.
  
  Engulfing & Imbalance Plot: Enable or disable plotting of the combined conditions (Engulfing + ATR Imbalance) with arrows.
  

How This Indicator Helps:
By combining price action patterns with volatility analysis, this indicator highlights high-probability reversal points where significant price movement (imbalance) coincides with a clear Engulfing pattern. Traders can use these signals to time entries or exits based on both price action and market volatility.

16 godzin temu

Informacje o Wersji

Add!!

• User Input for Engulfing Type:
  

  I added an input option where the user can choose between two types of engulfing candles: Standard or Sweep.
  input.string('Standard', 'Engulfing Type', options=['Standard', 'Sweep']) allows the user to select either "Standard" or "Sweep."
  Standard Engulfing Conditions:
  

• For the Standard engulfing condition:
  

  A bullish engulfing happens when the current candle closes higher than it opens, and the previous candle is fully engulfed by the current one.
  A bearish engulfing happens when the current candle closes lower than it opens, and the previous candle is fully engulfed by the current one.
  

• Sweep Engulfing Conditions:
  

  The Sweep engulfing condition includes the standard conditions plus additional checks:
  For bullish engulfing (Sweep), the current candle's low must be lower than the previous candle's low.
  For bearish engulfing (Sweep), the current candle's high must be higher than the previous candle's high.
  

• Dynamic Condition Selection:
  

  Depending on the user's choice (Standard or Sweep), the script dynamically selects the appropriate conditions for bullish and bearish engulfing.
  If the user selects Standard, the script uses the basic engulfing conditions.
  If the user selects Sweep, the script adds the additional low/high sweep conditions.

• Color and Visualization:
  

  The script colors the engulfing candles white (color_white) when they match the selected conditions (based on the user's choice).
  It also checks for imbalance conditions (large price moves relative to ATR) and colors those candles yellow (color_yellow).
  

• Engulfing and Imbalance Plot:
  

  The script plots shapes (arrows) when both engulfing and imbalance conditions are met:
  Green arrow for bullish engulfing with imbalance.
  Red arrow for bearish engulfing with imbalance.
  

• Alert Condition:
  

  An alert is triggered if an engulfing candle (bullish or bearish) occurs along with an imbalance condition (price move is larger than ATR times a multiplier).
  This allows users to be notified when both conditions happen at the same time.
  

• Summary:
  

  This code lets the user choose between two types of engulfing candles: Standard and Sweep. The Sweep type adds an extra condition that compares the current candle’s low or high to the previous candle’s low or high.
  The script then colors and visualizes these candles accordingly, plots arrows for both engulfing and imbalance conditions, and provides an alert when both occur together.