![[S1B] Engulfing Orderblock chart preview](https://s3.tradingview.com/p/PkDFctlx.png?v=1741712084)
A custom trading indicator that visually highlights bullish and bearish engulfing patterns by drawing colored boxes around specific candles to help traders identify potential price reversals.
Explore complementary indicator rolesHow it works
The Engulfing Orderblock indicator automatically scans price charts to detect specific candlestick patterns where one candle completely engulfs the previous candle. For bullish patterns, it identifies a bearish candle followed by a candle that closes above the previous candle's open, marking the area with a green box. For bearish patterns, it recognizes a bullish candle followed by a candle closing below the previous candle's open, marking the area with a red box.
The indicator dynamically manages these boxes by monitoring price movements and either deleting or changing the box color to gray when the price moves significantly beyond the original pattern's range. It also limits the number of displayed patterns to 500 to prevent chart clutter, ensuring traders can focus on the most recent and relevant engulfing patterns.
Why it may be useful
Engulfing patterns are critical for traders because they represent potential trend reversals and key moments of market sentiment shift. These patterns provide visual evidence of a potential change in momentum, where buyers or sellers have overwhelmed the previous price action, signaling a possible trend change or significant price movement.
By automatically highlighting these patterns with colored boxes, the indicator helps traders quickly identify high-probability trading opportunities without manually scanning charts. The dynamic box management also helps traders understand the current relevance of each pattern, making it easier to make informed trading decisions based on recent price action.
When to explore it
The Engulfing Orderblock indicator is most effective in markets with clear trending or ranging conditions, where price action shows distinct momentum shifts. Traders can use this tool in various timeframes, from short-term scalping to longer-term swing trading, making it versatile across different trading styles and market environments.
The indicator works best when combined with other technical analysis tools like support and resistance levels, trend indicators, or volume analysis. Traders should use the engulfing patterns as a confirmation signal rather than a standalone trading strategy, always considering the broader market context and implementing proper risk management techniques.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
