ENGULFING INDICATOR MT5

• The JF Engulfing indicator is very accurate and easy to use. The perfect trend reversal detector.

If you are a technical forex trader, you have probably come across the term “eng-pattern”. If not, don’t worry. As the name implies, an engulfing pattern occurs when one candle completely covers the previous candle. You can easily detects the pattern by this JF Engulfing indicator. In fact, the pattern is a sign of a possible trade reversal and appears in general or against the trend.

• JF Engulfing Indicator for MT5 scans the market and identifies engulfing patterns on the chart. This means you don’t have to do the chore of manually defining a template. In fact, the indicator goes one step further by distinguishing between bearish and bullish engulfing and labeling them accordingly.

Therefore, the JF Engulfing indicator is suitable for both beginners and experienced traders. The best part is that you can use the indicator on all currency pairs and timeframes. In addition, the indicator allows you to customize the settings according to your personal preferences.

Using the JF absorption indicator for trading

• Essentially, eng patterns show where market pressure is concentrated. To be precise, bullish engulfing shows that buying pressure is dominating the market. In other words, there are more buyers than sellers and therefore push prices up. When there are more sellers than buyers, they lower the price.
• The indicator shows a GREEN arrow pointing up when it identifies a bullish movement pattern and a RED arrow pointing down when it identifies a bearish engulfing pattern. So your job is to identify the arrows and trade accordingly. However, it is wise to use other confirmation filters such as trendlines and moving averages to support the signal.
• In addition, the indicator works best in resistance and support zones. In other words, the signal is strong when the GREEN arrow (bullish engulfing) appears on resistance areas and the RED arrow appears on support area.
• The chart above shows the price action of the Euro against the US Dollar. The indicator scans the chart and detects engulfing patterns. For example, the indicators show a RED arrow indicating that the engulfing pattern is bearish. Notice how the pattern (shown by the arrow) is formed after double tapping. This makes the pattern a high probability signal. In fact, after the signal, the markets undergo a strong bearish move. The market has now formed a bullish engulfing pattern of new lows. The GREEN arrows indicate a good place to enter a long position.

Conclusion

• The engulfing pattern is one of the most popular profitable candlestick patterns. The JF Engulfing indicator saves the trader from the hard work of identifying the pattern on the chart. It also tells investors whether to buy or sell by indicating bullish and bearish arrows. You simply place the indicator on the chart and it will identify the patterns for you. All you have to do is trade accordingly and the profits will start rolling in. Like most indicators, you must use other tools to confirm.