Engulfing Candles [keypoems]

Engulfing Candles highlights bullish and bearish engulfing patterns on any chart and lets you study how price has *actually* behaved after they appeared.

WHAT THE INDICATOR SHOWS

• A candle is flagged when its wick sweeps the previous candle’s high (bearish case) or low (bullish case) **and** its close overpowers the prior body.

• For each engulfing candle the script automatically draws –
 – **High line** at the engulfed candle’s top.
 – **Sweep line** at the extreme that was taken.
 – **Low line** at the opposite end of that candle’s body.
 – An optional **box** that frames the entire engulfing candle.
 – The **open of the next bar** so you can judge expansion.
 – Three optional **projection levels** that often act as logical profit targets.

All drawings extend only until price invalidates them, so your chart stays tidy.

WHY THIS MATTERS

A full-length test on hourly data back to 2010 on Nasdaq showed that **more than 90 %** of bullish engulfing candles first reclaimed the engulfed high and roughly **75 %** went on to travel at least half the engulfed range. Similar result was found for the bearish case.

MAIN SETTINGS
• **Time-frame** – run on the chart’s period or pick 1m, 3m, 5m, 15m, 30m, 1h, 4h or Daily.
• **Engulfing box** – toggle the frame, its border, fill opacity, and whether the engulfing candle’s own open should be drawn.
• **Bar color** – optionally tint every bar that sits inside an active engulfing range.

ALERTS
Two non-repainting alert conditions trigger once the higher-time-frame candle closes:
 • **Bullish Engulfing Pattern**
 • **Bearish Engulfing Pattern**
Use them for notifications or as inputs to other TradingView tools.

GOOD-TO-KNOW
• Patterns are kept in a rolling list capped at 20 to save resources.
• Projection lines update only after the *next* bar opens, preventing premature levels.
• If the data feed cannot supply the requested time-frame, you will see a clear warning instead of partial plots.

DISCLAIMER
This indicator is provided for educational and informational purposes only. It is **not** financial advice, a trading recommendation or a guarantee of future performance. Historical probabilities are descriptive, not predictive; markets change. Always back-test thoroughly and apply sound risk management before risking real capital. Neither the author nor keypoems accepts liability for any losses.