OPEN-SOURCE SCRIPT
Mustang Algo - Engulfing Detector
🐎 MUSTANG ALGO - ENGULFING DETECTOR
An advanced engulfing candlestick pattern detector with customizable filters for more precise trading signals.
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📊 WHAT IS THIS INDICATOR?
The Mustang Algo Engulfing Detector identifies bullish and bearish engulfing patterns with advanced filtering options to reduce false signals and improve trade quality. This indicator helps traders spot high-probability reversal opportunities based on candlestick patterns and trend confirmation.
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✨ KEY FEATURES
🔹 Engulfing Pattern Detection
• Bullish Engulfing: Identifies potential bullish reversals
• Bearish Engulfing: Identifies potential bearish reversals
• Real-time signal labels (BUY/SELL)
🔹 Size Filter
• Filter out small, insignificant candles
• Adjustable minimum body size percentage
• Optional filter for the engulfed candle size
• Ensures only strong patterns are detected
🔹 EMA Trend Filter
• Customizable EMA period (default: 200)
• BUY signals only above EMA (uptrend)
• SELL signals only below EMA (downtrend)
• Visual EMA line on chart
• Reduces counter-trend false signals
═══════════════════════════════════════
🎯 HOW TO USE
1. Add the indicator to your chart
2. Adjust the filters according to your trading style
3. Wait for BUY (green) or SELL (red) labels
4. Confirm with your own analysis and risk management
5. Trade in the direction of the signal
⚠️ IMPORTANT: This indicator should be used in conjunction with proper risk management and additional analysis. No indicator is 100% accurate.
═══════════════════════════════════════
⚙️ CUSTOMIZABLE SETTINGS
📏 Size Filter Group:
• Enable/Disable size filtering
• Min Body Size (%): Minimum candle body size to generate signals (0.01% - 10%)
• Check Engulfed Candle Size: Also verify the size of the engulfed candle
• Min Engulfed Body Size (%): Minimum size for the engulfed candle
📈 EMA Filter Group:
• Enable/Disable EMA filtering
• EMA Length: Period for the EMA calculation (default: 200)
• Show EMA on Chart: Display the EMA line
═══════════════════════════════════════
💡 BEST PRACTICES
✅ Use on higher timeframes (4H, Daily) for better reliability
✅ Combine with support/resistance levels
✅ Wait for candle close confirmation before entering
✅ Use proper stop-loss and take-profit levels
✅ Consider market context and overall trend
❌ Don't trade every signal blindly
❌ Don't ignore risk management
❌ Don't use on very low timeframes without additional filters
═══════════════════════════════════════
📈 RECOMMENDED SETTINGS
Conservative Trading:
• Min Body Size: 0.8% - 1.0%
• EMA Filter: Enabled (200 period)
• Check Engulfed Size: Enabled
Aggressive Trading:
• Min Body Size: 0.3% - 0.5%
• EMA Filter: Disabled or lower period (50-100)
• Check Engulfed Size: Disabled
═══════════════════════════════════════
🔒 DISCLAIMER
This indicator is provided for educational and informational purposes only. Past performance is not indicative of future results. Always conduct your own research and use proper risk management. Trading involves substantial risk of loss.
═══════════════════════════════════════
Created by Mustang Algo
Version 1.0
If you find this indicator helpful, please leave a like and comment! 🚀
An advanced engulfing candlestick pattern detector with customizable filters for more precise trading signals.
═══════════════════════════════════════
📊 WHAT IS THIS INDICATOR?
The Mustang Algo Engulfing Detector identifies bullish and bearish engulfing patterns with advanced filtering options to reduce false signals and improve trade quality. This indicator helps traders spot high-probability reversal opportunities based on candlestick patterns and trend confirmation.
═══════════════════════════════════════
✨ KEY FEATURES
🔹 Engulfing Pattern Detection
• Bullish Engulfing: Identifies potential bullish reversals
• Bearish Engulfing: Identifies potential bearish reversals
• Real-time signal labels (BUY/SELL)
🔹 Size Filter
• Filter out small, insignificant candles
• Adjustable minimum body size percentage
• Optional filter for the engulfed candle size
• Ensures only strong patterns are detected
🔹 EMA Trend Filter
• Customizable EMA period (default: 200)
• BUY signals only above EMA (uptrend)
• SELL signals only below EMA (downtrend)
• Visual EMA line on chart
• Reduces counter-trend false signals
═══════════════════════════════════════
🎯 HOW TO USE
1. Add the indicator to your chart
2. Adjust the filters according to your trading style
3. Wait for BUY (green) or SELL (red) labels
4. Confirm with your own analysis and risk management
5. Trade in the direction of the signal
⚠️ IMPORTANT: This indicator should be used in conjunction with proper risk management and additional analysis. No indicator is 100% accurate.
═══════════════════════════════════════
⚙️ CUSTOMIZABLE SETTINGS
📏 Size Filter Group:
• Enable/Disable size filtering
• Min Body Size (%): Minimum candle body size to generate signals (0.01% - 10%)
• Check Engulfed Candle Size: Also verify the size of the engulfed candle
• Min Engulfed Body Size (%): Minimum size for the engulfed candle
📈 EMA Filter Group:
• Enable/Disable EMA filtering
• EMA Length: Period for the EMA calculation (default: 200)
• Show EMA on Chart: Display the EMA line
═══════════════════════════════════════
💡 BEST PRACTICES
✅ Use on higher timeframes (4H, Daily) for better reliability
✅ Combine with support/resistance levels
✅ Wait for candle close confirmation before entering
✅ Use proper stop-loss and take-profit levels
✅ Consider market context and overall trend
❌ Don't trade every signal blindly
❌ Don't ignore risk management
❌ Don't use on very low timeframes without additional filters
═══════════════════════════════════════
📈 RECOMMENDED SETTINGS
Conservative Trading:
• Min Body Size: 0.8% - 1.0%
• EMA Filter: Enabled (200 period)
• Check Engulfed Size: Enabled
Aggressive Trading:
• Min Body Size: 0.3% - 0.5%
• EMA Filter: Disabled or lower period (50-100)
• Check Engulfed Size: Disabled
═══════════════════════════════════════
🔒 DISCLAIMER
This indicator is provided for educational and informational purposes only. Past performance is not indicative of future results. Always conduct your own research and use proper risk management. Trading involves substantial risk of loss.
═══════════════════════════════════════
Created by Mustang Algo
Version 1.0
If you find this indicator helpful, please leave a like and comment! 🚀
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.