Based on a request on the forum (https://www.prorealcode.com/topic/count-5-10candle-sticks-that-closes-above-50-ema/), I wrote this indicator that may help to better identify when an Engulfing pattern can be a good reversal point.
It counts candles BELOW an MA (on a Bullish Engulfing) and candles ABOVE an MA (on a Bearish Engulfing). I added two MA’s, to detect when their average counts are rising or dropping to make an even better decision:
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// Count candles Above or Below an average before an Engulfing occurs // // (requested at https://www.prorealcode.com/topic/count-5-10candle-sticks-that-closes-above-50-ema/) // // AvgP = 100 // AvgT = 0 // p = 50 // t = 1 // AvgP = max(2,min(999,AvgP)) //2-999 AvgT = max(0,min(6,AvgT)) //0-6 p = max(2,min(999,p)) //2-999 t = max(0,min(6,t)) //0-6 // Bullish = close > open Bearish = close < open Opposite = (Bearish AND Bullish[1]) OR (Bearish[1] AND Bullish) Body = abs(close - open) Engulfing = (Body > Body[1]) AND Opposite BullishEng= Engulfing AND Bullish AND (close >= open[1]) AND (open <= close[1]) BearishEng= Engulfing AND Bearish AND (Open >= close[1]) AND (close <= open[1]) MyEma = average[p,t](close) // // Count candles ABOVE average before a BEARISH Engulfing occurs // BullBarCount = 0 BearBarCount = 0 If BearishEng THEN //BullBarCount = 0 FOR i = BarIndex - 1 DOWNTO 1 x = BarIndex - i IF close[x] > MyEma[x] THEN BullBarCount = BullBarCount + 1 ELSE BREAK ENDIF NEXT ENDIF // // Count candles BELOW average before a BULLISH Engulfing occurs // If BullishEng THEN //BearBarCount = 0 FOR i = BarIndex - 1 DOWNTO 1 x = BarIndex - i IF close[x] < MyEma[x] THEN BearBarCount = BearBarCount + 1 ELSE BREAK ENDIF NEXT BearBarCount = -BearBarCount ENDIF // BullAvg = average[AvgP,AvgT](BullBarCount) BearAvg = average[AvgP,AvgT](BearBarCount) // RETURN BullBarCount AS "Bulls",BearBarCount AS "Bears",BullAvg AS "BullMA",BearAvg AS "BearMA",0 AS "Zero" |
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