Bearish Engulfing                              Bullish Engulfing

Bearish Engulfing Identification

1.  The first candle is small, white and may be a Doji. It is confirmed when it is part of an established up trend.
2.  The second candle is black and its body engulfs the body of the first candle.

Bullish Engulfing Identification

1.  The first candle is small, black and may be a Doji. It is confirmed when it is party of an established down trend.
2.  The second candle is white and its body engulfs the body of the first candle.  

Confirmation

An optional parameter may be selected to assist in trend determination by requiring a minimum of three preceding candles in the appropriate direction as demonstrated in the images above. When the confirmation parameter is not selected, only the two candle pattern is required.

Reversal Detection

The Engulfing candlestick pattern is used to detect a trend reversal. By incorporating this pattern recognition feature into a robot the following trade signals may be created.

Buy Signals

A buy signal is created when a Bullish Engulfing candlestick pattern is formed. If the confirmation parameter is selected three candles in an upward trend must precede the Bullish Engulfing pattern..

Sell Signals

A sell signal is created when a Bearish Engulfing candlestick pattern is formed. If the confirmation parameter is selected three candles in a downward trend must precede the Bullish Engulfing pattern.

Candlestick Colors

The traditional candlestick colors of White = "Up" and Black = "Down" are used.

Candlestick Pattern Recognition

This robot was created using the FxCandles Library included with FxSpyder's Autotrading Object Model. The Object Model is explained in detail with complete references in FxSpyder's Help Section from within the trading application, script editor and backtester.

Customization

This robot is available for customization via Help Desk requests.

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