OPEN-SOURCE SCRIPT
EMA Touch True Engulfing
### Overview
This script is a premium technical analysis tool that combines **Multi-EMA Touch Alerts** with a highly strict **"True Engulfing"** price action filter.
Unlike standard engulfing indicators that only look at the candle body, this version requires the current candle to engulf the **entire range (including wicks)** of the previous candle. This ensures you only see the most powerful reversal signals near key dynamic support and resistance.
### Key Features
* **Strict "True Engulfing" Logic**: Signals only appear when the current candle's body completely swallows the previous candle's High and Low.
* **4-Layer EMA Setup**: Tracks 4 customizable EMAs (Default: 10, 20, 40, 80) for trend context.
* **Minimalist Visuals**: Uses the Japanese character **"包"** (meaning "Engulf") for a clean, non-intrusive chart layout.
* **Green Label**: High-probability Bullish Engulfing.
* **Red Label**: High-probability Bearish Engulfing.
* **Combo Alerts**: Built-in alert conditions for EMA touches, True Engulfing patterns, and a "Combo Alert" for when both happen simultaneously.
### How to Trade
1. **Trend Context**: Identify the primary trend using the EMAs.
2. **The Retest**: Wait for the price to pull back to an EMA.
3. **The Confirmation**: Look for the **"包"** label. This indicates that the market has completely rejected the EMA level by overpowering the previous candle's entire range.
This script is a premium technical analysis tool that combines **Multi-EMA Touch Alerts** with a highly strict **"True Engulfing"** price action filter.
Unlike standard engulfing indicators that only look at the candle body, this version requires the current candle to engulf the **entire range (including wicks)** of the previous candle. This ensures you only see the most powerful reversal signals near key dynamic support and resistance.
### Key Features
* **Strict "True Engulfing" Logic**: Signals only appear when the current candle's body completely swallows the previous candle's High and Low.
* **4-Layer EMA Setup**: Tracks 4 customizable EMAs (Default: 10, 20, 40, 80) for trend context.
* **Minimalist Visuals**: Uses the Japanese character **"包"** (meaning "Engulf") for a clean, non-intrusive chart layout.
* **Green Label**: High-probability Bullish Engulfing.
* **Red Label**: High-probability Bearish Engulfing.
* **Combo Alerts**: Built-in alert conditions for EMA touches, True Engulfing patterns, and a "Combo Alert" for when both happen simultaneously.
### How to Trade
1. **Trend Context**: Identify the primary trend using the EMAs.
2. **The Retest**: Wait for the price to pull back to an EMA.
3. **The Confirmation**: Look for the **"包"** label. This indicates that the market has completely rejected the EMA level by overpowering the previous candle's entire range.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.