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Engulfing Candle Trading Strategy

This document outlines a trading strategy using TradingView's Pine Script to identify bullish and bearish engulfing candles. It generates long and short trading signals based on these patterns and includes logic for entering and exiting positions accordingly. The strategy visualizes the signals on the chart with labels for easy identification.

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Yacine Amalou
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© All Rights Reserved
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23 views1 page

Engulfing Candle Trading Strategy

This document outlines a trading strategy using TradingView's Pine Script to identify bullish and bearish engulfing candles. It generates long and short trading signals based on these patterns and includes logic for entering and exiting positions accordingly. The strategy visualizes the signals on the chart with labels for easy identification.

Uploaded by

Yacine Amalou
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd

//@version=5

strategy("Engulfing Candle Strategy with Signal-based Exit", overlay=true)

// Function to identify bullish engulfing candle


bullishEngulfing = [Link](close[1], open[1]) and close > open and open <=
close[1] and close >= open[1]

// Function to identify bearish engulfing candle


bearishEngulfing = [Link](close[1], open[1]) and close < open and open >=
close[1] and close <= open[1]

// Generate long and short signals


longSignal = bullishEngulfing
shortSignal = bearishEngulfing

// Plot long and short signals on the chart


plotshape(longSignal, style=[Link], color=[Link], text="Long",
location=[Link], size=[Link])
plotshape(shortSignal, style=[Link], color=[Link], text="Short",
location=[Link], size=[Link])

// Strategy entries and exits


if (longSignal)
// Close short position if open, then enter long
if (strategy.position_size < 0)
[Link]("Short")
[Link]("Long", [Link])

if (shortSignal)
// Close long position if open, then enter short
if (strategy.position_size > 0)
[Link]("Long")
[Link]("Short", [Link])

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