Strategy Premise
This Strategy uses a Bullish Engulfing candle and Bearish Engulfing Candle A bullish engulfing pattern can be identified when a small black candlestick showing a bearish trend is followed the next day by a large white candlestick showing a bullish trend, the body of which completely overlaps or engulfs the body of the previous day’s candlestick.
A Bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The pattern consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that eclipses or “engulfs” the smaller up candle. The pattern can be important because it shows sellers have overtaken the buyers and are pushing the price more aggressively down (down candle) than the buyers were able to push it up (up candle).
Strategy Logic
Long Entry: When Bullish Engulfing Candle is Current bar open is less than equal to the previous bar close and current bar open is less than previous bar open and current bar close is greater than previous bar open, Send LE.
Long Exit: Either when SL or Target is hit. If SL/TGT is not hit and current bar open is greater than equal to previous bar close and current bar open is greater than previous bar open and current bar close is less than previous bar open send LX and SE
Short Entry: When the current bar open is greater than equal to the previous bar close and current bar open is greater than the previous bar open and the current bar close is less than the previous bar open, Send SE
Short Exit: Either when SL or Target is hit. If SL/TGT is not hit and Bullish Engulfing Candle is Current bar open is less than equal to the previous bar close and current bar open is less than previous bar open and current bar close is greater than the previous bar open send SX and LE
TradingView Settings
1: Download The Pine Script Algo here
2: Open desired Chart in trading View with normal Candlestick, Select the desired timeframe of the chart, Go to the pine editor section, remove the default code, paste the downloaded code, save the file, and to chart.
3: You can optimize your strategy by changing the input parameters, using “Settings” of Engulfing Candles Strategy.
Setting Up Alert
Before setting up an alert, make sure of few things.
(1) You have selected the desired script, timeframe, and strategy settings.
(2) API bridge is configured and running.
Once you have made sure, click on settings. Then add alert and paste {{strategy.order.comment}} in the message box.
Important: do not change any settings during live trading.
NOTE: The pinescript works both with webhook alerts (TV Pro plan) and normal popup alerts (TV free plan).
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