[S1B] Engulfing Orderblock

anteontem

The Engulfing Orderblock indicator is a custom script designed to visually highlight and track bullish and bearish engulfing patterns on a price chart. These patterns are widely used in technical analysis to identify potential reversal points. The indicator dynamically draws colored boxes around the previous candle involved in the engulfing event, making it easier for traders to spot these setups in the price action.

Key Features:

Bullish Engulfing Pattern:
When a bearish candle (one where the open is higher than the close) is followed by a candle whose close is above the previous candle’s open, the indicator detects a bullish engulfing pattern. A green box is drawn around the previous candle.
• Box Style Options: Users can choose whether the box represents the candle’s body (from open to close) or its wick (from open to low).
Bearish Engulfing Pattern:
When a bullish candle (one where the open is lower than the close) is followed by a candle whose close is below the previous candle’s open, a bearish engulfing pattern is identified. A red box is drawn around the previous candle.
• Box Style Options: The box can be drawn using the candle’s body (from close to open) or its wick (from high to open), according to the user’s preference.
Dynamic Box Management:
Once a box is drawn, the indicator continuously monitors the price. If the price moves beyond the box’s range, the box is either deleted or its color changes to gray, indicating that the pattern’s relevance may be diminishing.
Max Pattern Tracking:
To prevent clutter, the indicator limits the number of displayed engulfing boxes to 500 by default. Older boxes are removed as new patterns are detected.
Customization:
Users can adjust the number of previous bars scanned for engulfing patterns as well as the maximum number of patterns displayed. An option is also provided to select whether the box should reflect the candle’s body or include the wick.
How It Works:

Pattern Detection:
The script compares the current price with the previous candle’s data to detect either a bullish or bearish engulfing pattern.
Box Creation:
When a pattern is detected, a colored box is drawn around the previous candle’s price range (using the user-selected style) to visually highlight the orderblock.
Pattern Expiry and Cleanup:
The indicator monitors each drawn box, deleting or modifying it (changing the color to gray) if the price moves significantly beyond the box’s range.
Remark:
The original concept for this indicator is from daisukeburn.

anteontem

Notas de Lançamento

The Engulfing Orderblock indicator is a custom script designed to visually highlight and track bullish and bearish engulfing patterns on a price chart. These patterns are widely used in technical analysis to identify potential reversal points. The indicator dynamically draws colored boxes around the previous candle involved in the engulfing event, making it easier for traders to spot these setups in the price action.

Key Features:

Bullish Engulfing Pattern:
When a bearish candle (where the open is higher than the close) is followed by a candle whose close is above the previous candle’s open, the indicator detects a bullish engulfing pattern. A green box is drawn around the previous candle to mark the orderblock.
• Box Style Options: Users can choose among three styles:
  - Original: The bullish orderblock is drawn from the previous candle’s open to its low.
  - Candle Body Only: The bullish orderblock is drawn from the previous candle’s open to its close.
  - Full Candle: The bullish orderblock covers the entire range of the previous candle (from high to low).
Bearish Engulfing Pattern:
When a bullish candle (where the open is lower than the close) is followed by a candle whose close is below the previous candle’s open, a bearish engulfing pattern is detected. A red box is drawn around the previous candle to mark the orderblock.
• Box Style Options: Users can choose among three styles:
  - Original: The bearish orderblock is drawn from the previous candle’s open to its high.
  - Candle Body Only: The bearish orderblock is drawn from the previous candle’s close to its open.
  - Full Candle: The bearish orderblock covers the entire range of the previous candle (from high to low).
Dynamic Box Management:
Once a box is drawn, the indicator continuously monitors the price. If the price moves beyond the box’s range, the box is either deleted or its color changes to gray, indicating that the pattern’s relevance may be diminishing.
Max Pattern Tracking:
To prevent clutter, the indicator limits the number of displayed engulfing boxes to 500 by default. Older boxes are removed as new patterns are detected.
Optional Engulfing Candle Highlight:
Users have the option to highlight the engulfing candle itself (both its body and wick) using a separate set of color inputs. This additional visual cue can help confirm the pattern.
Customization:
Users can adjust the number of previous bars scanned for engulfing patterns, the maximum number of patterns displayed, the box style, and the colors for both the orderblock boxes and the engulfing candle highlight.
How It Works:

Pattern Detection:
The script compares the current price with the previous candle’s data to detect either a bullish or bearish engulfing pattern.
Box Creation:
When a pattern is detected, a colored box is drawn around the previous candle’s price range based on the selected style to visually highlight the orderblock.
Pattern Expiry and Cleanup:
The indicator monitors each drawn box, deleting or modifying it (by changing its color to gray) if the price moves significantly beyond the box’s range.
Remark:
The original concept for this indicator is from https://www.tradingview.com/u/daisukeburn.