Devourer, the engulfing pattern indicator MT4 that risks a little to make a lot
Price walks in one direction for a few candles. Then one candle opens, swallows the whole body of the previous one and closes on the other side. The last buyers are trapped inside a candle that has already gone against them. Devourer is an engulfing pattern indicator MT4 that finds that moment at the end of a push and fires on the close.
The arrow does not repaint, does not move and does not disappear. It needs two closed candles, and once it prints it stays exactly where it printed.
Click the image to enlarge
Real chart, EURUSD on H1. After a climb, a red candle eats the green one before it and closes below it. The sell arrow prints at 1.16035 and the stop goes above the pair at 1.16154, a risk of only 12 pips. From there the euro fell to 1.14548, a move of 148 pips, more than twelve times the risk. That ratio is the whole point of this tool. Every price comes from the exact candle history of that chart.
Why engulfing candles work
An engulfing candle is one of the best known candlestick patterns, and the reason is simple. In a single candle, the side that was losing took the whole range of the previous one and closed beyond it. That is a change of control, not a pause.
However, the pattern shows up everywhere if you do not filter it. Therefore Devourer asks for three extra things: a body bigger than average, a short run in the opposite direction before it, and the pair sitting at the extreme of the recent candles.
What Devourer checks before it fires
- The meal. The previous candle, of the opposite colour, whose body gets covered completely.
- The bite. A candle that opens beyond the previous close and closes beyond the previous open, with a real body.
- The setting. A short push in the other direction before it, and a fresh extreme of the look back.
Because the stop sits just beyond the pair, the risk is usually a handful of pips. As a result, a normal move in favour pays several times what you risked.
How to trade the engulfing pattern indicator MT4 signals
- Enter on the close of the engulfing candle. The turn is already on the chart.
- Stop just beyond the pair. This is the part to respect, because it is what makes the ratio so good.
- Aim far. Take a first profit at three times the risk and trail the rest.
- Trade the sessions. Also, London and New York give the engulfing candles that actually travel.
Markets and timeframes
| Gold XAUUSD | M5, excellent and very active |
| EURUSD | H1, for the big moves |
| GBPUSD | M15, the same ratio |
This engulfing pattern indicator MT4 gives several signals a day on gold M5 and a few a week on H1. In practice, the small timeframes are for activity and the high ones are for size, while the stop stays tiny on both.
What is inside
- Engulfing reversals in both directions, buy and sell.
- Small dots on the candle that gets swallowed.
- Editable body power, look back and the length of the push before the pattern.
- Arrows on closed candles only. They do not repaint, move or disappear.
- Popup, sound, push and email alerts, each one switchable.
- Premium dark chart theme, applied on attach and restored on remove.
Besides, it reads price only, so any broker and any account works. If you want robots that trade by themselves, browse our automated robots, and the rest of the manual set is in our chart tools for traders.
Questions about this engulfing pattern indicator MT4
Does it repaint? No. Two closed candles are needed before the arrow prints, and it never moves afterwards.
Does it need the shadows to be engulfed too? No. The classic pattern compares bodies, and that is what the tool uses.
Why are the stops so small? Because they go on the pattern, not on a fixed distance. A tight pair of candles gives a tight stop.
Do you have the other version? Yes. This is the MetaTrader 4 build, and Devourer for MT5 finds the same candles on MetaTrader 4.
Trading involves risk. Signals are information, not advice, so try any new tool on a demo account first and only trade money you can afford to lose.
