FOREX ENGULFING INDICATOR MT4
The engulfing indicator MT4 marks the classic engulfing candle on your chart, and you take the trade by hand. It is not a robot, so nothing opens an order for you. Instead, an arrow appears in the colour of the pattern, and you decide whether the setup fits your plan.
This indicator is very useful for those who base their trading on candlestick patterns, as well as to add it to any other strategy as an additional entry signal.
Depending on the nature of the patterns (bullish or bearish) it will give the appropriate entry signal with an arrow of the corresponding color, also showing the direction in which the trade should be opened.
Characteristics of the engulfing indicator MT4
Characteristics of the Egulfing Pattern Indicator:
- Platform: MT4
- Timeframes: ALL (Best H4 to W1)
- Currency pairs: ALL (the more volatility the better)
- Trading Time: around the clock
What the arrow is telling you
An engulfing candle appears when one body swallows the body before it. Therefore, the tool only has to compare two bars, and the result never depends on an opinion. If you have never studied the family of shapes behind it, then read about the candlestick pattern first, because the arrow simply names what the candles already did.
A bullish pattern paints one colour and a bearish one paints the other. Moreover, the arrow points in the direction of the entry, so you never have to guess which side the signal means. Still, you place the order yourself, and you choose the stop and the target.
The Currency Pair Changer included
Improvements: We have added an indicator “Currency Pair Changer” that will make trading easier for you because just by clicking on the desired pair and timeframe, it will change the chart without having to open several tabs simultaneously! This streamlines trading to find the pair in which to make your entries.
Signals of the engulfing indicator MT4 on M1 and M5
Now let’s look at how many correct entries it detects in 1 single currency pair in M1 (Attention Binary Traders)
See how many correct entries it detects in 1 single currency pair in M5 (Attention Binary Traders – Scalpers).
Higher timeframes, cleaner reading
Now let’s look at a higher timeframe H4. A lot of accurate signals:
Remember: Higher timeframe = more accurate signals
Because of that, we recommend H4 to W1 for the calmest reading, although every timeframe is available. Volatility helps as well, so the pairs that move the most usually give the clearest arrows.
Installing the engulfing indicator MT4
First, open MetaTrader and click File > Open Data Folder. Then copy the indicator files into the Indicators folder inside that data folder. Next, restart the platform or refresh the Navigator panel. Finally, drag the tool onto the chart you want to follow, and add the Currency Pair Changer as well.
Money management rules
As always, you need to follow the basic money management and do not risk more than 2% of your deposit in a separate transaction. Do not trade during the release of important economic news (see the economic calendar) and be sure to try it first on a demo account.
Trading involves risk, therefore only trade with money you can afford to lose. Past results do not guarantee future results. You trade at your own risk.
Would you like more tools for manual trading? Then browse the rest of our forex systems and indicators.
