1. Engulfing Easy

This is the least strict method, designed to detect more potential engulfing patterns.

Bullish Engulfing:

• The current candle closes above its open (‘c0 > o0’).

• The previous candle closes below its open (‘c1 < o1’).

• The current close is above the previous open (‘c0 > o1’).

Bearish Engulfing:

• The current candle closes below its open (‘c0 < o0’).

• The previous candle closes above its open (‘c1 > o1’).

• The current close is below the previous open (‘c0 < o1’).

This method identifies patterns with minimal requirements, making it suitable for traders who want a broader range of signals.

Tip: Use this setting if you want to detect all potential Breaker Blocks (BBs), as it identifies more patterns.

2. Engulfing Strict

This method introduces additional conditions to increase the reliability of the detected patterns.

Bullish Engulfing:

• The current candle closes above its open (`c0 > o0`).

• The previous candle closes below its open (`c1 < o1`).

• The current close is greater than or equal to the previous open (`c0 >= o1`).

• The current open is less than or equal to the previous close (`o0 <= c1`).

Bearish Engulfing:

• The current candle closes below its open (‘c0 < o0’).
• The previous candle closes above its open (‘c1 > o1’).
• The current close is less than or equal to the previous open (‘c0 <= o1’).
• The current open is greater than or equal to the previous close (‘o0 >= c1’).

This method is more precise, focusing on patterns with tighter relationships between the candles.

3. Engulfing Very Strict

This method adds even stricter rules, including a comparison of the current candle’s close to the high/low of the previous candle.

Bullish Engulfing:

• Same as “Engulfing Strict,” plus:

• The current close must exceed the previous high (‘c0 > h1’).

Bearish Engulfing:

• Same as “Engulfing Strict,” plus:

• The current close must fall below the previous low (`c0 < l1`).

This method ensures that only significant engulfing patterns are detected.

4. Engulfing HARDCORE

This is the strictest method, focusing on the most prominent engulfing patterns by adding conditions related to the body size of the candles.

Bullish Engulfing:

• Same as “Engulfing Very Strict,” plus:

• The body size of the current candle (`c0 – o0`) must be larger than the body size of the previous candle (`o1 – c1`).

Bearish Engulfing:

• Same as “Engulfing Very Strict,” plus:

• The body size of the current candle (`o0 – c0`) must be larger than the body size of the previous candle (`c1 – o1`).

This method highlights only the most dominant engulfing patterns and eliminates smaller, less significant ones.

Tip: Use this setting if you are focusing on Order Block (OB) analysis and want to filter for “beautiful engulfings” that are likely stronger due to better structural qualities (e.g., higher volume or clearer formations).

Which Method Is Better?

There is no definitive answer to whether Easy or Hardcore Engulfing produces “better” Breaker Blocks. The effectiveness of each method depends on:

1. Trading Style: Scalpers may prefer Easy Engulfing for more opportunities, while swing traders may favor Hardcore Engulfing for clarity.

2. Preference for Clarity: Hardcore Engulfing offers a less cluttered view, which might improve decision-making for some traders.

3. Market Conditions: In trending markets, Hardcore Engulfing might highlight stronger zones, while Easy Engulfing ensures no potential block is overlooked.

Summary

• Engulfing Easy: Broad and less strict; detects many patterns.

• Engulfing Strict: Adds tighter rules for more reliable signals.

• Engulfing Very Strict: Incorporates high/low comparisons for precision.

• Engulfing HARDCORE: Focuses on large-bodied, dominant patterns.

Recommendations

• Use Easy for detecting as many Breaker Blocks as possible.

• Use HARDCORE for Order Block analysis with higher-quality patterns.

Example: Engulfing Methods in Action

Below is an example that demonstrates the differences between Easy and Hardcore Engulfing:

• White dotted lines: Represent Breaker Blocks identified using Easy Engulfing.

• Puple solid lines: Represent Breaker Blocks identified using Hardcore Engulfing.

 

As seen in the example, Easy Engulfing captures more blocks, while Hardcore Engulfing focuses on fewer, higher-confidence levels.

Pro Tip

If you’re new to Breaker Blocks, start with Easy Engulfing to familiarize yourself with liquidity zones. As you gain confidence, experiment with Hardcore Engulfing to refine your analysis and create clearer setups.

Feel free to experiment with these settings to see which works best for your strategy!