Engulfing Indicator
Engulfing Indicator is highly accurate and easy to use. A perfect trend reversal detector.
CATEGORIES: MT4, SIGNAL, PATTERNS, INFORMATIONAL
Updated on: 22.10.2023
If you are a technical forex trader, you have probably come across the term engulfing pattern (eng-pattern). If you have not, do not fret. As the name implies, the eng-pattern occurs when one candlestick completely covers the previous candlestick. Essentially, the pattern is a sign of possible trade reversal and appears in the overall or counter-trends.
The Engulfing Indicator for MT4 – free download scans the market and identifies the engulfing patterns in the chart. This means that you do not have to do the donkey work of manually identifying the pattern. In fact, the indicator goes a step further to differentiate the bearish engulfing and bullish c and labels them accordingly.
Therefore the Engulfing Indicator is suitable for both beginners and advanced traders. The best part is that you can use the indicator in all currency pairs and timeframes. Also, the indicator allows you to tweak the settings to fit your personal preferences.
Using the Engulfing Indicator for Trading
Essentially, the eng-patterns show where the market pressure is concentrated. To be specific, the bullish engulfing shows the buying pressure is dominating the market. In other words, the buyers are more than the sellers and hence pushing the prices up. When the sellers are more than buyers, they push the price lower.
The indicator posts an upward-pointing blue arrow when it identifies a bullish eng-pattern and a red arrow pointing downward when it detects a bearish engulfing pattern. Therefore, your work is to identify the arrows and trade accordingly. However, it is prudent to use other confirmation filters like trend lines and moving averages to support the signal.
In addition, the indicator works best in resistance and support areas. Put differently, the signal is strong when the blue arrow (bullish engulfing) appears on the resistance areas, and the red arrow appears on the support area.
Save time withd software.
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