Indicator Engulfing

Bullish and Bearish Engulfing Candles, defined as: • Bullish Engulfing: The current candle closes above the previous candle’s high and opens below the previous candle’s low. • Bearish Engulfing: The current candle closes below the previous candle’s low and opens above the previous candle’s high. • Additionally, the indicator should confirm that the engulfing candle takes out the previous candle’s low (for bullish) or high (for bearish) — this acts as a liquidity grab. • The close of the engulfing candle should be above (bullish) or below (bearish) this liquidity grab level. • The pattern should only be signaled if the liquidity grab occurs at a significant swing low (for bullish) or swing high (for bearish) — defined as a local low or high pivot.