Singal Price action: Pinbar, Fakey, Engulfing

The Singal Price action: Pinbar, Fakey, Engulfing indicator automatically identifies and labels three high-probability candlestick patterns to help traders spot potential trend reversals and continuations.

Usage

This tool can be used to scan for specific price action setups across any timeframe.

• Pinbars: Represented by the letter 'P' at the bottom of the chart. A bullish Pinbar (green) suggests rejection of lower prices, while a bearish Pinbar (red) suggests rejection of higher prices.
• Engulfing Patterns: Represented by the letter 'E'. A bullish engulfing occurs when a green candle completely overlaps the body of the previous red candle, signaling upward momentum. A bearish engulfing occurs when a red candle overlaps the previous green candle, signaling downward momentum.
• Fakey Patterns: These are identified by horizontal lines drawn on the chart. A Fakey pattern occurs when price breaks out of an "Inside Bar" range but then quickly reverses, trapping breakout traders.

Details

The script uses specific logic to filter out noise and ensure pattern quality:

• Pinbar Logic: Calculates the ratio of the candle body to the total range. Only candles where the body is small relative to the wick and positioned at one end of the range are labeled.
• Inside Bar Filtering: The indicator checks for multiple layers of inside bars (up to 4 bars deep) to define the boundaries for Fakey patterns.
• Engulfing Logic: Requires the current candle to close beyond the previous candle's open and maintain a strong body-to-range ratio to ensure it isn't just a Doji.

Settings

• Pin bar body over whole candle: Adjusts the sensitivity of Pinbar detection. A lower value requires a smaller body relative to the total candle length, resulting in stricter (higher quality) pattern identification.

FAQ

How do I use the Fakey lines?

The horizontal lines represent the high and low of the "Mother Bar." When price pierces these lines but closes back within or on the opposite side, it triggers the Fakey signal, suggesting a false breakout.

Can I set alerts for these patterns?

Yes, the script includes built-in alert conditions for both "Signal Up" (bullish) and "Signal Down" (bearish) which aggregate the Pinbar, Engulfing, and Fakey patterns.

How do I access Singal Price action: Pinbar, Fakey, Engulfing?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.