SimpleTradingTechniques

ENGULFING CANDLESTICK STRATEGY

(i) Arrow represent trade setup

(ii) Circle represent triggering of the trade
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1. Where to place stop loss?
2. Where to exit the trade?
3. How to protect gains in your trade?
4. How to apply money management rule?
5. How to trade gap opening?

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?
//  By SIMPLE TRADING TECHNIQUES

//   	Arrow represent trade setup 
//   	Circle represent triggering of the trade
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study(title="STT ENGULFING CANDLESTICK STRATEGY",overlay = true, shorttitle="STT ECS")
src = close, len = input(8, minval=1, title="Length")
up = rma(max(change(src), 0), len)
down = rma(-min(change(src), 0), len)
rsi = down == 0 ? 100 : up == 0 ? 0 : 100 - (100 / (1 + up / down))

//coloring method below

src1 = close, len1 = input(50, minval=1, title="UpLevel")
src2 = close, len2 = input(50, minval=1, title="DownLevel")
isup() => rsi > len1
isdown() => rsi < len2
barcolor(isup() ? green : isdown() ? red : na )

//study('buy/sell arrows', overlay=true)

out = sma(close, 50)
data = rsi > len1 ? open[1] > close[1] ? close > open ? close >= open[1] ? close[1] >= open ? close - open > open[1] - close[1] ? high > out : na : na : na : na : na : na
data1 = rsi < len2 ? close[1] > open[1] ? open > close ? open >= close[1] ? open[1] >= close ? open - close > close[1] - open[1] ? low < out : na : na : na : na : na : na


plotchar(data, char='↑',location=location.belowbar, color=lime, text="ECS Buy")
plotchar(data1, char='↓', location=location.abovebar, color=red, text="ECS Sell")

//Trade Trigger
tiggerlongcandle = (data[1] == 1) and (high > high[1]) ? 1 : 0
tiggershortcandle = (data1[1] == 1) and (low < low[1]) ? 1 : 0
plotshape(tiggerlongcandle ? tiggerlongcandle : na, title="Triggered Long",style=shape.circle, location=location.belowbar, color=green, transp=0, offset=0, text="ECS")
plotshape(tiggershortcandle ? tiggershortcandle : na, title="Triggered Short",style=shape.circle, location=location.abovebar, color=red, transp=0, offset=0, text="ECS")

plot (out, color = black, linewidth = 3, title = "Trend - Long Term")