Engulfing Candle Scan

[AlleyCat]

I'm hoping for a scan that will identify any engulfing candle that is equal to or of greater height =/> than the candle that precedes it. Thanks.

 

[traderLK]

I'm hoping for a scan that will identify any engulfing candle that is equal to or of greater height =/> than the candle that precedes it. Thanks.

Hi AlleyCat,

My understanding from the description is that you want a bullish engulfing signal candle that is also greater than or equal in height to the previous bar (high equal to or above the previous high).

Your information isn't completely clearcut because "greater height" could mean that
the current high is higher than the previous high or
it might mean the high minus low length of the current bar is greater than the high minus low length of the previous bar or
it could mean that the high and low of the current bar engulfs the high and low of the previous bar.

I've observed that engulfing is sometimes thought to mean that the high and low of the current bar engulfs the high and low of the previous bar, but the standard definition is simply that the body of the current bar engulfs the previous bar's body.

The given description sounds like:
(1) Produce a signal when a bullish engulfing candle has formed (current body engulfs body of previous candle) and (2) the current high is greater than or equal to the high of the previous bar (high >= high[1]).

Here is a chart and code for this... set BullEngulfer to Is True for scans.

# BullishEngulfing_CandleTall
# Question from AlleyCat
# (1) Adds arrow when a bullish engulfing candle has formed (current body engulfs body of previous candle) that (2) also has a high greater than or equal to the high of the previous bar.
# Engulfing is defined here to mean the body of the current candle is equal to or greater in size than the body of the previous candle. This version doesn’t require the previous candle to be a bearish one or that the current candle’s body be X% larger than the body of the previous bar or that the current close be above a moving average or that the slope of a moving average be up, etc. though such additions might be helpful.

def UpClose = close > open;
def TallHeight = high >= high[1];

def EngulferClose = if close[1] < open[1] then close >= open[1] else if close[1] > open[1] then close >= close[1] else double.NaN;

def EngulferOpen = if close[1] < open[1] then open <= close[1] else if close[1] > open[1] then open <= open[1] else double.NaN;

plot BullEngulfer = UpClose and TallHeight and EngulferClose and EngulferOpen;

BullEngulfer.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
BullEngulfer.SetDefaultColor(Color.MAGENTA);
BullEngulfer.SetLineWeight(4);