Mean Reversion Study is an indicator that identifies trade setups combining exponential moving averages, RSI extremes, and engulfing candlestick patterns. It highlights bullish setups when a bullish engulfing candle forms below the EMA while RSI is oversold, a
Indicator · Pine Script v4 · On the chart
Engulfing Candles
This overlay indicator marks bullish and bearish engulfing candles with arrows on the price chart.
GitHub stars25on the repository
Pine versionv4older, still runs
Lines of code20
Settings3inputs
LicenceNone statedfile: MPL-2.0
Last update6 years ago29 Jun 2020
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 indicator, select all of the template text and paste. Press Save and give it a name.
- 4Add it to the chartPress Add to chart, then adjust the settings with the gear icon next to its name.
Source Code
20 lines of Pine Script v4 from reversals/engulfing-ema.pine, published under MPL-2.0 (file header). 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/
// © tista
//@version=4
study("Engulfing Candles", overlay=true)
useEmaAsConfirmation = input(true, title="Use EMA As Confirmation?", defval=false)
showEma = input(false, title="Show EMA Line?", defval=false)
emaPeriod = input(200, title="EMA Period (Surpress noise with higher EMA periods)", defval=200)
emaVals = ema(close, emaPeriod)
isBullishEngulfing = open[1] > close[1] and open >= close[1] and open <= close[1] and close >= open[1] and (useEmaAsConfirmation ? close <= emaVals : true)
isBearishEngulfing = open[1] < close[1] and open <= close[1] and open >= close[1] and close <= open[1] and (useEmaAsConfirmation ? close >= emaVals : true)
vals = isBullishEngulfing ? 1 : isBearishEngulfing ? -1 : na
// plotbar(open, high, low, close, title="Engulfing Candle", color = colors)
plotarrow(vals, title="Engulfing Candles", colorup=color.teal, colordown=color.orange, transp=40, maxheight=15)
plot(emaVals, title="EMA", color=showEma ? color.yellow : na, linewidth=2, transp=0)
Overview
A bullish mark requires a prior down candle and a current bar that meets the script's open and close relationship; a bearish mark uses the opposite pattern. An optional exponential moving average can filter those marks so price must sit on the specified side of the average, and the same average can be drawn as a yellow line. The period input changes that average. It does not define entries, exits, or stops.
- Bullish and bearish engulfing arrows
- Optional EMA confirmation filter
- Optional EMA line on the chart
- Adjustable EMA period
Details
Published by
tistaharahap on GitHub
Code credit
tista, as written in the script's header
Type
Indicator, Pine Script v4
Draws
On the price chart
Category
Candlestick patterns, Moving averages
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 |
|---|---|---|---|
| Use EMA As Confirmation? | bool | false | useEmaAsConfirmation |
| Show EMA Line? | bool | false | showEma |
| EMA Period (Surpress noise with higher EMA periods) | int | 200 | emaPeriod |
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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