-- Engulfing Pattern indicator

-- This indicator provides a graphical output to display engulfing candles

and a three line strike entry point.

--

-- Available Configuration:

-- Moving Averages period

-- RSI period

-- Color scheme.

-- Visibility

-- Author: Muhammad Ahmod

-- Repo: https://github.com/Muhammad-1990/iqoption

-- Released under MIT License

-- Copyright (c) 2021 Muhammad Ahmod.

-- Permission is hereby granted, free of charge, to any person obtaining a

copy of this software and associated documentation files (the "Software"),
to deal in the Software without restriction,

-- including without limitation the rights to use, copy, modify, merge,

publish, distribute, sublicense, and/or sell copies of the Software, and to
permit persons to whom the Software is furnished to do so,

-- subject to the following conditions:

-- The above copyright notice and this permission notice shall be included
in all copies or substantial portions of the Software.

-- THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY

KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE
WARRANTIES OF MERCHANTABILITY,

-- FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO

EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY
CLAIM, DAMAGES OR OTHER LIABILITY,
-- WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING
FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR
OTHER DEALINGS IN THE SOFTWARE.

-- Setup indicator 'constructor'

instrument {

name = 'Engulfing pattern',

short_name = 'EngulfPattern',

icon = 'indicators:Fractal',

overlay = true

input_group {

"BUY",

buy_color = input {default = "lime", type = input.color}

input_group {

"SELL",

sell_color = input { default = "red", type = input.color },

input_group {

"RSI",

rsi_period = input (14, "RSI period", input.integer, 1),

buyRegionRSI = input (50, "RSI buy region", input.integer, 1),

sellRegionRSI = input (50, "RSI sell region", input.integer, 1),

}
input_group {

"Fast",

fast = input (21, "MA", input.integer, 1, 200),

Show_fast = input { default = true, type = input.plot_visibility },

input_group {

"Medium",

medium = input (50, "MA", input.integer, 1, 200),

Show_medium = input { default = true, type = input.plot_visibility },

input_group {

"Slow",

slow = input (200, "MA", input.integer, 1, 200),

Show_slow = input { default = true, type = input.plot_visibility },

input_group {

"Trend fill",

trend_Fill = input { default = true, type = input.plot_visibility },

RSI = rsi(close, rsi_period)

fastSSMA = ssma(close, fast)

mediumSSMA = ssma(close, medium)

slowSSMA = ssma(close, slow)

if Show_fast == true then

plot (fastSSMA, "fastSSMA", "white", 1)

end
if Show_medium == true then

plot (mediumSSMA, "mediumSSMA", "lime", 1)

end

if Show_slow == true then

plot (slowSSMA, "slowSSMA", "red", 3)

end

-- Check that moving averages are alinged to represent a uptrend.

upTrend = conditional((fastSSMA > mediumSSMA) and (mediumSSMA >

slowSSMA) and (RSI > buyRegionRSI))

-- Check that moving averages are alinged to represent a downtrend.

downTrend = conditional((fastSSMA < mediumSSMA) and (mediumSSMA

< slowSSMA) and (RSI < sellRegionRSI))

-- Check if current candle is green and previous is red and current is bigger
than previous.

bulishEngulfing = conditional((close[0] > open[0]) and (close[1] <

open[1]) and (abs(close[0]-open[0]) > abs(open[1] - close[1])))

-- Check if current candle is red and previous is grenn and current is

bigger than previous.

bearishEngulfing = conditional((close[0] < open[0]) and (close[1] >

open[1]) and (abs(open[0] - close[0]) > abs(close[1]-open[1])))

-- Check if current candle is green and previous 3 is red and current is

bigger than previous.

bulishThreeLineStrike = conditional(close[3] < open[3] and close[2] <

open[2] and close[1] < open[1] and close > open and abs(close - open) >
abs(open[1] - close[1]))

-- Check if current candle is red and previous 3 is green and current is

bigger than previous.
bearishThreeLineStrike = conditional(close[3] > open[3] and close[2] >
open[2] and close[1] > open[1] and close < open and abs(open - close) >
abs(close[1] - open[1]))

-- Output if we have a bulish engulfing in uptrend.

plot_shape((upTrend[0] and bulishEngulfing)

,"BuyEng"

,shape_style.triangleup

,shape_size.tiny

,buy_color

,shape_location.belowbar

,0

,""

,buy_color

-- Output if we have a bearish engulfing in downtrend.

plot_shape((downTrend[0] and bearishEngulfing)

,"SellEng"

,shape_style.triangledown

,shape_size.tiny

,sell_color

,shape_location.abovebar

,0

,""

,sell_color

-- Output if we have a 3 line strike in uptrend.

plot_shape((upTrend[0] and bulishThreeLineStrike)

 ,"Buy3LS"

,shape_style.triangleup

,shape_size.normal

,buy_color

,shape_location.belowbar

,0

,""

,buy_color

-- Output if we have a 3 line strike in downtrend.

plot_shape((downTrend[0] and bearishThreeLineStrike)

,"Sell3LS"

,shape_style.triangledown

,shape_size.normal

,sell_color

,shape_location.abovebar

,0

,""

,sell_color

if upTrend[0] and

((close[0] > open[0]) and (close[1] < open[1]) and (abs(close[0]-open[0])

> abs(open[1] - close[1]))

or

(close[3] < open[3] and close[2] < open[2] and close[1] < open[1] and
close > open and abs(close - open) > abs(open[1] - close[1]))

) then
 StopLoss = lowest(low, 3)

TakeProfit = close[0] + ((close[0] - StopLoss) *2)

rect {

first = StopLoss,

second = close[0],

name = "myStopLoss",

color = "rgba(255, 0, 0, 0.25)",

width = 1

rect {

first = close[0],

second = TakeProfit,

name = "myTakeProfit",

color = "rgba(50, 205, 50, 0.25)",

width = 1

end

if downTrend[0] and

(((close[0] < open[0]) and (close[1] > open[1]) and (abs(open[0] -

close[0]) > abs(close[1]-open[1])))

or

(close[3] > open[3] and close[2] > open[2] and close[1] > open[1] and
close < open and abs(open - close) > abs(close[1] - open[1]))

)then
 StopLoss = highest(high, 3)

TakeProfit = close[0] - ((StopLoss - close[0] ) *2)

rect {

first = StopLoss,

second = close[0],

name = "myStopLoss",

color = "rgba(255, 0, 0, 0.25)",

width = 1

rect {

first = close[0],

second = TakeProfit,

name = "myTakeProfit",

color = "rgba(50, 205, 50, 0.25)",

width = 1

end

-- Check if user is displaying trend fill option

if trend_Fill == true then

-- Fill trend from 1 period down to slow period.

fill(sma(close, 1),slowSSMA,"Area", close > slowSSMA and "rgba(34,

139, 34, 0.25)" or close < slowSSMA and "rgba(220, 20, 60, 0.25)" )

end