FREE Engulfing Indicator

[Mpot]

Engulfing Indicator for MT4​

The Engulfing Pattern (Eng-Pattern) is a well-known candlestick formation among technical forex traders. It signals potential trend reversals and occurs within overarching or counter-trends. This pattern emerges when one candlestick fully "engulfs" the previous candlestick, highlighting a shift in market sentiment.

The Engulfing Indicator for MT4 simplifies trading by automatically scanning the chart for these patterns and distinguishing between bearish and bullish engulfing patterns, making it highly suitable for both beginner and advanced traders.

---

Key Features​

1. Automated Pattern Identification
   
   • Eliminates the need for manually searching for engulfing patterns.
   • Differentiates between bullish engulfing and bearish engulfingpatterns by marking them with arrows:
     • Blue Arrow (Upward): Bullish engulfing pattern.
     • Red Arrow (Downward): Bearish engulfing pattern.
2. Versatile Application
   
   • Works across all currency pairs and timeframes.
   • Customizable settings to suit personal trading strategies.
3. Support and Resistance Integration
   
   • The indicator performs best when used in conjunction with support and resistance levels.
   • Bullish engulfing at support areas and bearish engulfing at resistance areas are strong signals.

---

Trading with the Engulfing Indicator​

The engulfing pattern highlights market pressure shifts:

• Bullish Engulfing Pattern: Indicates buyers are overpowering sellers, pushing prices higher.
• Bearish Engulfing Pattern: Indicates sellers are dominating buyers, driving prices lower.

Strategy Guidelines:​

1. Look for arrows on the chart:
   • Blue arrow signals a potential long entry (buy).
   • Red arrow signals a potential short entry (sell).
2. Combine with other confirmation tools:
   • Trend lines.
   • Moving averages.
   • Resistance and support zones.
3. Enter trades at identified levels and set stop-loss and take-profit targets based on your strategy.

---

Chart Example​

In the example of GBP/AUD:

• The red arrow marks a bearish engulfing pattern forming after a double-touch at a resistance level, signaling a high-probability short trade. This led to a strong bearish movement.
• The blue arrows highlight bullish engulfing patterns at new lows, suggesting potential long entry points.

---

Conclusion​

The Engulfing Indicator for MT4 is a powerful tool that reduces the manual effort required to identify profitable candlestick patterns. By providing clear bullish and bearish signals, it guides traders on when to buy or sell.

However, like all technical indicators, it is best used in conjunction with other tools, such as trend lines and moving averages, for confirmation. With proper use, the Engulfing Indicator can significantly enhance trading efficiency and profitability.