Engulfing Buying and selling System – MANUAL – Buying and selling Methods – 22 February 2026

What’s Engulfing Buying and selling System?

Engulfing Buying and selling System helps you see Bullish and Bearish Engulfing patterns in your MetaTrader 5 charts — robotically. The indicator scans each candle, filters out weak setups, and exhibits you solely the very best buying and selling alternatives with clear entry factors, cease losses, and revenue targets already calculated. It really works on any market and any timeframe, supplying you with extra time to focus in your buying and selling choices as an alternative of looking for patterns.

What Are Engulfing Patterns?

Engulfing patterns are highly effective 2-bar reversal patterns that seem when market momentum shifts dramatically from one route to the opposite. The defining attribute is that the second candle’s physique fully wraps round (engulfs) the primary candle’s physique — a visible show of 1 facet overwhelming the opposite.

Bullish Engulfing (Bullish Reversal)

A Bullish Engulfing seems on the backside of a downtrend. The primary candle (setup) is a bearish candle displaying sellers are nonetheless pushing value down. Then the second candle (engulfing) opens under the setup candle’s shut and closes above the setup candle’s open — its physique fully wraps the primary candle’s physique. This dramatic shift exhibits consumers have taken over with power, signaling a possible pattern reversal upward.

Bearish Engulfing (Bearish Reversal)

A Bearish Engulfing seems on the high of an uptrend. The primary candle (setup) is a bullish candle displaying consumers are nonetheless pushing value up. Then the second candle (engulfing) opens above the setup candle’s shut and closes under the setup candle’s open — fully wrapping the primary candle’s physique. This exhibits sellers have overwhelmed consumers in a single session, signaling a possible pattern reversal downward.

Whenever you see these patterns forming close to necessary assist or resistance ranges, they grow to be much more dependable indicators for potential pattern reversals.

How the Indicator Finds Patterns

The indicator scans your charts in real-time and checks every potential sample in opposition to a number of high quality necessities:

1. Checks that each candles have significant our bodies (not doji or spinning tops) to substantiate decisive market participation
2. Verifies the engulfing candle’s physique fully wraps the setup candle’s physique — opening past one excessive and shutting past the opposite
3. Measures the engulfing candle’s energy relative to current volatility (ATR) to filter out insignificant strikes
4. Optionally checks for pattern context utilizing a easy transferring common to substantiate the sample seems after a directional transfer

Solely patterns that cross all these checks seem in your chart, so you do not waste time on weak or invalid setups.

High quality Rating — How Good Is the Sample?

Each sample will get a top quality rating from 0% to 100%, like a grade on a take a look at. This helps you concentrate on the very best buying and selling alternatives.

What the Rating Means

The indicator evaluates 4 key components to grade every Engulfing sample. How a lot bigger is the engulfing physique in comparison with the setup physique? How robust is the engulfing candle relative to current volatility? The place did the engulfing candle shut inside its vary? And does the sample seem in a significant pattern context? Patterns with bigger engulfing ratios, robust momentum, and clear pattern context obtain greater scores.

High quality Threshold Setting

By default, the indicator solely exhibits patterns scoring 30% or greater. You’ll be able to regulate this within the settings:

• Increase to 50-60%: See solely the very best indicators (fewer however greater high quality)
• Decrease to 15-20%: See extra indicators (extra frequent however combined high quality)
• Tip: Begin with the default 30% and regulate primarily based in your backtest outcomes

What You See on the Chart

When the indicator detects an Engulfing sample, it attracts every thing you have to know instantly on the chart:

Sign Markers

• Arrow icons: A inexperienced upward arrow seems under bullish engulfing patterns; a purple downward arrow seems above bearish engulfing patterns
• High quality labels: The standard rating share (e.g., “78%”) is displayed subsequent to every sign arrow

Buying and selling Traces

• Entry line: A blue horizontal line on the engulfing candle’s excessive (bullish) or low (bearish), or on the shut value in aggressive mode
• Cease Loss line: A purple horizontal line under the sample low (bullish) or above the sample excessive (bearish), with pip distance label
• Take Revenue strains: As much as 4 inexperienced strains (TP1-TP4) at configurable R:R ratios, every with pip distance and R:R labels

Visible Zones

• Sample spotlight: A shaded rectangle covers the sample space, inexperienced for bullish and purple for bearish setups
• Monitoring dots: Small dots hint the value path after a sign is detected, altering shade because the sign progresses by means of its lifecycle

Sign Lifecycle

Indicators progress by means of completely different states, proven by altering colours and monitoring dots:

1. Pending: Sample simply detected, ready for entry affirmation
2. Triggered: Entry value reached, commerce is lively
3. Goal Hit: Worth reached take revenue stage (sign turns inexperienced)
4. Cease Hit: Worth hit cease loss (sign turns purple)
5. Cancelled: Sign invalidated earlier than entry (sign disappears or grays out)

You’ll be able to watch your indicators evolve in real-time with out opening any menus or panels.

Settings You Can Alter

Listed below are the principle settings that management how the indicator finds and shows Engulfing patterns:

Settings Suggestions

• Begin with all default settings and let the indicator run for a number of days to see the way it performs
• The Entry Mode setting is exclusive to this indicator — attempt Conservative first for safer entries with breakout affirmation
• Should you get too many indicators, elevate the standard threshold to 50% or allow the pattern filter (set Pattern SMA Interval to twenty)
• At all times backtest any setting adjustments earlier than utilizing them on a dwell account

Finest Timeframes and Markets

Really useful Timeframes

Finest Markets

• XAUUSD (Gold): Wonderful sample readability on H1 and H4 timeframes — engulfing patterns are particularly efficient on gold as a consequence of its robust momentum strikes
• EURUSD, GBPUSD, USDJPY: Work nicely on all timeframes above M15 — main pairs present clear engulfing formations
• US30, NAS100: Finest outcomes on H4 and Each day timeframes the place institutional participation creates clear engulfing strikes
• Cryptocurrency (BTCUSD, ETHUSD): Use H4 or Each day timeframe for clearer indicators — decrease timeframes are typically noisy

The indicator works on any image and timeframe, however these combos have a tendency to supply essentially the most dependable indicators.

Getting Began — Fast Setup

Comply with these steps to start out utilizing Engulfing Buying and selling System:

1. Open MetaTrader 5 and cargo your most popular chart (we suggest beginning with XAUUSD on H1)
2. Within the Navigator panel (Ctrl+N), increase “Indicators” and discover “Engulfing Buying and selling System”
3. Drag the indicator onto your chart
4. A settings window seems — click on OK to make use of the default settings to your first session
5. Look ahead to sign arrows and buying and selling strains to seem because the indicator scans your chart historical past
6. After observing a number of indicators, regulate the High quality Threshold or Entry Mode primarily based in your buying and selling fashion
7. Allow push notifications in Settings > Alerts if you need cell alerts for brand spanking new indicators

That is it! The indicator is now scanning your charts robotically and can warn you when high-quality Engulfing patterns seem.

All Options at a Look

Sample-Particular Options

• ✓ Full physique engulfment detection with computerized bullish/bearish classification
• ✓ 4-factor weighted high quality scoring: engulf ratio, physique/ATR, shut place, pattern context
• ✓ Twin entry mode system: Conservative (breakout) or Aggressive (shut) with configurable buffer
• ✓ Sample-adaptive cease loss placement at sample excessive with ATR buffer
• ✓ Non-obligatory pattern filter through SMA to align indicators with prevailing pattern route

The next professional-grade options can be found throughout all our indicators:

Frequent Questions

Q: Why does the cease loss appear huge on some indicators?

The indicator locations the cease loss past the sample’s excessive (low for bullish, excessive for bearish) plus an ATR buffer. Broad-range engulfing patterns naturally produce wider stops. You’ll be able to swap the SL Technique to Donchian Channel for structure-based stops, or scale back the SL Buffer setting for tighter placement — however remember this may occasionally enhance false stop-outs.

Q: What is the distinction between Conservative and Aggressive entry mode?

Conservative mode locations a pending order on the engulfing candle’s excessive (bullish) or low (bearish) plus a small ATR buffer — you solely enter if value confirms the route. Aggressive mode enters on the engulfing candle’s shut value, supplying you with earlier positioning however with out breakout affirmation. Begin with Conservative in the event you desire safer entries.

Q: How do I scale back the variety of indicators?

Three choices: (1) Increase the Min High quality threshold from 0.30 to 0.50 or greater. (2) Set Require Pattern Bars to 2-3 so patterns should seem after a transparent pattern. (3) Allow the Pattern SMA filter (set interval to twenty) to solely present indicators aligned with the transferring common route.

Q: How is Engulfing completely different from the Darkish Cloud / Piercing sample?

Engulfing requires the second candle’s physique to fully wrap the primary candle’s physique — opening past and shutting past each extremes. Darkish Cloud and Piercing solely require the second candle to penetrate previous the midpoint of the primary candle. Engulfing is mostly thought of a stronger reversal sign due to the whole physique engulfment.

Q: Can I take advantage of this indicator with an Knowledgeable Advisor?

Sure. The indicator exposes 10 sign buffers (Route, Entry, SL, TP1-4, High quality, Sign ID) that any EA can learn through iCustom(). See the EA Sign Buffers person information for connection particulars and a ready-to-use EA template.

What’s New — Model 1.00

That is the v1.00 launch of Engulfing Buying and selling System. Key options embrace:

• Computerized Bullish and Bearish Engulfing sample detection on all timeframes
• 4-factor weighted high quality scoring (engulf ratio, physique/ATR, shut place, pattern context)
• Twin entry mode: Conservative (breakout affirmation) and Aggressive (candle shut)
• 7-layer sign filter chain (high quality, excessive zone, route, SL hunt, sign zone, spacing, reverse)
• Multi-timeframe scanner monitoring as much as 150 symbols throughout 8 timeframes
• Donchian Channel trailing cease with breakeven lock and dynamic adjustment
• 4-channel alert system (popup, sound, push, e mail) with anti-spam safety
• Market construction evaluation with BOS/CHOCH detection and swing labeling
• 4 chart themes (Darkish Muted, Darkish, Mild, Customized)
• 10 EA sign buffers for algorithmic buying and selling integration

Getting Assist

You probably have questions or want assist:

I am dedicated to serving to you get essentially the most out of this indicator.

Able to Begin?

Engulfing Buying and selling System is designed to save lots of you time and allow you to discover high-probability Engulfing patterns robotically. Connect the indicator to your chart and begin with the default settings — you possibly can fine-tune every thing later as you get snug with the way it works.

Completely satisfied buying and selling!

Ich Khiem Nguyen

Engulfing Buying and selling System v1.00 — Created February 2026