Exceeded Candle [Alorse] is a mean-reversion strategy that identifies candlestick engulfing patterns combined with Bollinger Bands filters. It enters a long position when a green candle surpasses the body of the previous red candle while price is below the mid
Strategy · Pine Script v4 · On the chart
Engulfing Candle Long Strategy (D)
This strategy trades long only on the price chart.
GitHub stars5on the repository
Pine versionv4older, still runs
Lines of code54
Settings7inputs
LicenceApache-2.0
Last update3 years ago12 May 2023
Add It to Your TradingView Chart
- 1Copy the scriptPress Copy script above, or the copy button on the code below.
- 2Open the Pine EditorOpen a TradingView chart and choose Pine Editor at the bottom of the screen.
- 3Paste over the templateCreate a new strategy, select all of the template text and paste. Press Save and give it a name.
- 4Add it to the chartPress Add to chart. The trades and results appear in the Strategy Tester tab; adjust the settings with the gear icon.
Source Code
54 lines of Pine Script v4 from Engulfing_Candle/Engulfing_Candle_Long_Strategy.txt, published under Apache-2.0. Keep the author's credit and licence lines when you reuse it.
// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © krosenfeld7
//@version=4
strategy("Engulfing Candle Long Strategy (D)", overlay = true, pyramiding = 0,
margin_long = 100, margin_short = 100, default_qty_type = strategy.percent_of_equity,
default_qty_value = 20, initial_capital = 2000, process_orders_on_close = true)
// Set the starting point for backtesting
start = input(title="Backtesting Start", type=input.time, defval=timestamp("1 Jan 2015"))
// Expiration time on orders
maxTimeOpen = input(title="Order Expiration", type=input.integer, defval=100, minval=1)
useAtr = input(title="Use ATR?", type=input.bool, defval=false)
// Algorithm / Strategy Goes here
// Set long / short variables to execute positions below
openBarPrevious = open[1]
closeBarPrevious = close[1]
openBarCurrent = open
closeBarCurrent = close
//If current bar open is less than equal to the previous bar close AND current bar open is less than previous bar open AND current bar close is greater than previous bar open THEN True
bullishEngulfing = (openBarCurrent <= closeBarPrevious) and (openBarCurrent < openBarPrevious) and (closeBarCurrent > openBarPrevious)
long = bullishEngulfing
// Average True Range
length = input(title="ATR Length", defval=14, minval=1)
atrMultiplier = input(title="ATR Multiplier", type=input.float, defval=1, minval=0.1)
atr = atr(length)
longProfitPercent = input(title = "Profit %",
type = input.float, minval = 0.0, step = 0.1, defval = 10) / 100
longLossPercent = input(title = "Loss %",
type = input.float, minval = 0.0, step = 0.1, defval = 10) / 100
// Calculating exact prices for stop loss and exit prices
longExitPercentPrice = strategy.position_avg_price * (1 + longProfitPercent)
longStopPercentPrice = strategy.position_avg_price * (1 - longLossPercent)
// Profit & Loss via ATR
longExitPrice = useAtr ? strategy.position_avg_price + atr * atrMultiplier : longExitPercentPrice
longStopPrice = useAtr ? strategy.position_avg_price - atr * atrMultiplier : longStopPercentPrice
// Plotting profit / loss targets
plot(series = (strategy.position_size > 0) ? longExitPrice : na, color = color.green, style = plot.style_linebr, transp = 0, linewidth = 3, title = "Long Target")
plot(series = (strategy.position_size > 0) ? longStopPrice : na, color = color.red, style = plot.style_linebr, transp = 0, linewidth = 3, title = "Long Stop Loss")
// Submit entry orders
if time >= start
strategy.entry(id = "Long", long = strategy.long, comment = "Long Open", when = long)
// Submit exit orders
strategy.exit(id = "Long", limit = longExitPrice, stop = longStopPrice, comment = "Long Close", when = strategy.position_size > 0)
strategy.close(id = "Long", comment = "Expired: >" + tostring(maxTimeOpen), when = (barssince(change(strategy.opentrades)) + 1) >= maxTimeOpen)
Overview
Engulfing Candle Long Strategy (D) enters when the current bar opens at or below the prior close, opens below the prior open, and closes above the prior open, after a chosen backtest start. It exits at a percent profit and stop, or at ATR multiples when that option is on, and closes the trade if it stays open longer than the expiration setting. Size is a fixed percent of equity. Pyramiding is off and orders are processed on bar close.
- Bullish engulfing long entries
- Percent profit and stop targets
- Optional ATR profit and stop
- Bar-count order expiration
- Overlay target and stop plots
Details
Published by
krosenfeld7 on GitHub
Type
Strategy, Pine Script v4
Draws
On the price chart
Category
Candlestick patterns
Markets
Any symbol
Timeframes
Any timeframe
Risk Notes
No repainting, lookahead or stacked entries were found in its code or README. That says nothing about how well it works: test it first.
Settings
The inputs you can change from the gear icon on the chart. Defaults are the author's.
| Setting | Type | Default | Variable |
|---|---|---|---|
| Backtesting Start | time | timestamp("1 Jan 2015") | start |
| Order Expiration | int | 100 | maxTimeOpen |
| Use ATR? | bool | false | useAtr |
| ATR Length | int | 14 | length |
| ATR Multiplier | float | 1 | atrMultiplier |
| Profit % | float | 10 | longProfitPercent |
| Loss % | float | 10 | longLossPercent |
Third-party code. ForexR did not write, test or endorse this script, and the summary above was generated automatically from its code and README. Indicators describe the past, and a strategy's backtest can look better than live trading, especially when a script repaints. Check it in the Strategy Tester and on a demo account before you rely on it.
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