Engulfing/Outside Bar

Dec 3, 2020

This indicator provides a statistical report on the Engulfing/ Outside Bar candlestick pattern. Based on the chart's bars, it can improve your edge on any markets and timeframes.

Knowing there are many definitions about the Engulfing/ Outside Bar pattern, here we're strictly referring to one bar's body engulfing one other AND making a higher high and lower low.



The report is broken down into the different following sections: retracement, invalidation, continuation and breakout.

Each of them provides hindsights about the pattern price behavior and brings answers to questions such as: How often does price retrace? Does the pattern often invalidate? If it doesn't then does it break in the pattern's direction? How far does price go? What are the odds of a false breakout?

While there are many ways to make use of the metrics, my favorite use case is for developing directional and daily/weekly biases while refining my stop/entry/target positioning.

Miscellaneous

• Highlights patterns on the chart;
  
• Supports bar to bar analysis and replay functionalities;
  
• Provides counts on the `Data Window` panel for debugging or computing your own metrics;
  

Settings

• Option for filtering patterns that close outside previous bar;
  
• Show/hide for toggling different sections;
  
• Report coloring and offset on the x axis;
  

Gaining Access

This is a private indicator and is available only for my Patrons. You can reach my Patreon page below from the link in my signature.

Dec 11, 2021

Release Notes

MAJOR UPDATE

This release brings a new look to the indicator and many improvements under the hood brought by the latest features from Pinescript.

That is not all, it comes along new features:

• Filtering of reversal only patterns (two different modes);
  
• Reporting of the pattern’s frequency over 100 bars;
  
• Expressing the distance optionally in Average True Range;
  
• Extending the distance data with price traveling less than half of its length / ATR;
  
• Reporting the chances of price breaking only one side of the pattern the next bar;
  
• Displaying the historical share of bullish and bearish patterns;
  
• Showing the statistics of next bar closing up or down;