Doji's/Engulfing Candles/Supertrend v1.0

The Doji's/Engulfing Candles/Supertrend v1.0 indicator provides a comprehensive price action and trend-following toolkit by identifying classic candlestick patterns in conjunction with a Supertrend volatility filter. It helps traders spot potential reversals and trend continuations by visually highlighting Bullish/Bearish Engulfing candles and Doji formations while maintaining an active view of the prevailing market trend.

Usage

The indicator can be used to identify high-probability entry or exit points by combining candlestick psychology with trend direction.

• Bullish Engulfing: Highlighted with an upward arrow below the bar and a bar color change to green. These occur when a large green body completely "engulfs" the previous red body, signaling potential bullish momentum.
• Bearish Engulfing: Highlighted with a downward arrow above the bar and a bar color change to red. These occur when a large red body "engulfs" the previous green body, signaling potential bearish momentum.
• Doji: Labeled with "Doji" text on the chart. These represent market indecision where the open and close prices are nearly identical.
• Supertrend: Represented by a colored line (green for bullish, red for bearish) and larger directional arrows. Traders often use the Supertrend as a filter; for example, only taking Bullish Engulfing signals when the Supertrend is green.

Details

This script is a combined implementation based on concepts from HPotter and Rajandran R. The Supertrend component utilizes Average True Range (ATR) to calculate dynamic support and resistance levels, while the candlestick logic uses specific price relationships to identify engulfing patterns and Dojis based on a user-defined sensitivity threshold.

Settings

Patterns

• Doji size: Determines the sensitivity of the Doji detection. A smaller value requires the open and close to be closer together relative to the bar's total range.

Supertrend

• Supertrend Factor: The multiplier applied to the ATR to determine the distance of the trend line from the price.
• Supertrend Period: The lookback period used for the ATR calculation.

FAQ

How do I access the Doji's/Engulfing Candles/Supertrend v1.0?

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

What is the best timeframe to use this indicator on?

While it works on all timeframes, candlestick patterns like Engulfing candles are often considered more reliable on higher timeframes such as the 1H, 4H, or Daily charts.

Can I set alerts for specific patterns?

Yes, the indicator includes built-in alerts for Bullish/Bearish Engulfing candles, Doji detections, and Supertrend directional flips.