Engulfing Strategy

This indicator has the following key features:

- Detects bullish and bearish engulfing candlestick patterns using a well-established price and body comparison logic.
- Incorporates a customizable moving average filter with multiple smoothing options to confirm trend direction.
- Highlights both the current and previous candles involved in the engulfing pattern by coloring them distinctly, improving visual clarity for reversal signals.
- Offers an interchangeable mode allowing the user to switch between a fully automated trading strategy (entries and exits) and a simple indicator mode (signal and color visualization only).
- Supports pyramiding positions and accounts for commissions and initial capital for realistic strategy testing.
- Uses modern Pine Script v5 functions and syntax for reliable and efficient execution.
- Provides clear visual bar colors for bullish (orange) and bearish (yellow) engulfing signals.
- Allows configuration of MA type and period, adapting to various trading styles and assets.

These features make it a versatile tool for traders seeking both visual confirmation and automated trade execution based on engulfing candle patterns combined with trend filtering.

by tumiza999