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 v5 · On the chart
Fractal Engulfing Candles
This indicator marks engulfing-style candles on the price chart when they also form at a ten-bar swing.
GitHub stars1on the repository
Pine versionv5runs as is
Lines of code18
Settings0inputs
LicenceNone statedfile: MPL-2.0
Last update2 years ago3 Oct 2024
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
18 lines of Pine Script v5 from 05. Candlestick Patterns/03. Fractal Engulfing Candles.pine, published under MPL-2.0 (file header). Keep the author's credit and licence lines when you reuse it.
// This Pine Script™ code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © cmoutafidis
//@version=5
indicator(title="Fractal enculfing Caldles", overlay = true)
swingHigh = high == ta.highest(high, 10) or high[1] == ta.highest(high, 10)
swingLow = low == ta.lowest(low, 10) or low[1] == ta.lowest(low, 10)
//ema = ta.ema(close, 50)
rsi = ta.rsi(close, 14)
// previus bar is bearish, the current bar opened lower than prev close, current bar closed higher than prev open, and swing low/high
bullEc = close[1] < open[1] and open <= close[1] and close >= open[1] and swingLow and rsi < 30 // or close > ema
bearEc = close[1] > open[1] and open >= close[1] and close <= open[1] and swingHigh and rsi > 70 // or close < ema
plotshape(bullEc, style = shape.triangleup, location = location.belowbar, color = color.green, size = size.small)
plotshape(bearEc, style = shape.triangledown, location = location.abovebar, color = color.red, size = size.small)
Overview
A bullish mark requires a prior bearish candle, an open at or below that close, a close at or above that open, a swing low, and RSI below 30. A bearish mark uses the opposite candle test, a swing high, and RSI above 70. Green triangles plot below bars and red triangles plot above bars. There are no user inputs, and the script does not issue entries, exits, or stops.
- Bullish and bearish engulfing-style marks
- 14-period RSI filter
- Ten-bar swing high and swing low filter
- Triangle markers on the price chart
Details
Published by
fiji-solutions on GitHub
Code credit
cmoutafidis, as written in the script's header
Type
Indicator, Pine Script v5
Draws
On the price chart
Category
Candlestick patterns, Oscillators & momentum
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.
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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