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Engulfing Settings and Data Filters

Engulfing Made Smarter & Powerful Filters

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Engulfing Engine

This section focuses on settings related to the detection and visualization of Engulfing Patterns, which are critical for identifying Order Blocks and Breaker Blocks.

Engulfing and Filters

Engulfing Engine

  • A dropdown menu allowing you to choose the specific type of engulfing logic used for pattern detection.
  • Examples might include “Engulfing Strict” or other variations based on different criteria for defining an engulfing candle.
  • You can find more information about the different engulfings here.
  • Tip: Experiment with different engines to find the one that aligns best with your trading strategy.

Size: 

  • (new since V1.07): Filtering by engulfed candle body size. “Minimum body size of the engulfed candle expressed as a percentage of the current asset price. For example, a value of 0.05 means the candle body must be at least 0.05% of the current price. Use a higher value for filtering out smaller, less significant candles. Set to 0 (default) to disable filtering.” The value is normalized to ensure that OBs remain consistent across different timeframes; however, the parameter may need to be adjusted for different assets.

Visualize Engulfing:

  • Toggles the visualization of engulfing candles directly on the chart.
  • When enabled, the engulfing candles used for calculations will be highlighted, providing a clearer understanding of the logic behind Order Block creation.
  • Use Case: This is particularly helpful for learning how the indicator interprets engulfing patterns and for validating detected zones.
  • new (since V1.07): You can use the visualization in multi-timeframe mode.

    Get a clearer picture of how buying and selling pressure changes in the market with our new Engulfing visualization. Engulfings from higher timeframes are shown more frequently on lower timeframes, creating “Engulfing Bands.” When multiple timeframes signal engulfings at the same time, you’ll see multiple prints on a single bar. These combined signals can help reveal potential trend shifts.

Multitimeframe Engulfing Visulization

Tips:

  • Performance Considerations: Enabling “Visualize Engulfing” may slightly impact performance but is invaluable for debugging and understanding market structure.
  • Practical Use: If you are new to the concept of engulfing patterns, use the visualization feature to better understand their role in the creation of Order Blocks.

Data Filters Settings

Preferences: Check out the bottom section to apply specific filters to your data. Select a filter from the dropdown menu to refine the data displayed according to your needs.

ADX

  • ADX Period (ADX):
    Defines the lookback period for calculating the Average Directional Index (ADX), which measures trend strength.
  • ADX Smoothing (ADX):
    Controls the smoothing factor for ADX calculations to reduce noise in trend strength measurement.
  • Minimum ADX Value (ADX):
    Sets the threshold for trend strength. Values below this threshold will be excluded from analysis.

ATR

  • ATR Period (ATR-Period):
    Determines the lookback period for calculating the Average True Range (ATR), which measures market volatility.
  • Minimum ATR Value (ATR-Period):
    Specifies the minimum acceptable ATR value. Periods with lower volatility are excluded.

Bollinger Bands

  • BB Period (Bollinger Bands):
    Sets the lookback period for Bollinger Bands, a volatility indicator used to identify potential reversal areas.
  • BB Standard Deviation (Bollinger Bands):
    Controls the multiplier for standard deviations in Bollinger Bands. A higher value widens the bands.

Candle Pattern Strength

  • Number of Previous Candles (Candle Pattern Strength):
    Defines how many candles are used to evaluate the strength of a price pattern.
  • Candle Size Multiplier (Candle Pattern Strength):
    Adjusts the threshold for candle body size, emphasizing stronger patterns.
  • Minimum Candle Size (%) (Candle Size):
    Filters out candles smaller than the specified percentage of the average range.

Moving Averages

  • MA Period (Distance from MA):
    Specifies the moving average period for measuring the price’s distance from the MA.
  • Minimum Distance (%) (Distance from MA):
    Sets the minimum percentage distance a price must be from the moving average to qualify for analysis.

Volume

  • Volume Average Period (Dynamic Volume):
    The number of candles used to calculate the average volume for filtering periods with significant market activity.
  • Volume Multiplier (Dynamic Volume):
    Sets a multiplier for average volume. Only candles exceeding this volume threshold are considered.

Price Range

  • Range Lookback Period (Prior Range):
    Defines the number of bars to calculate the prior price range for historical analysis.
  • Range Threshold (%) (Prior Range):
    Sets the percentage deviation from the range to identify significant price levels.
  • Range Lookback Period (Ranges):
    Specifies the number of bars for analyzing percentile ranges in market structure.
  • Lower Percentile (%) (Ranges):
    Filters out price levels below this percentile of the price range.
  • Upper Percentile (%) (Ranges):
    Filters out price levels above this percentile of the price range.

RSI

  • RSI Period (RSI):
    Sets the lookback period for the Relative Strength Index (RSI), an oscillator for overbought and oversold conditions.
  • Overbought Level (RSI):
    Specifies the upper RSI limit for identifying overbought conditions.
  • Oversold Level (RSI):
    Specifies the lower RSI limit for identifying oversold conditions.

Trading Session

  • Trading Session Time (Time of Day):
    Allows filtering based on specific trading session times. Specify the start and end times to narrow the analysis.

Trend Direction

  • MA Period (Trend Direction):
    Defines the moving average period used for determining the overall trend direction.
  • MA Type (Trend Direction):
    Selects the type of moving average (e.g., SMA, EMA) to be used for trend direction analysis.

MACD

  • MACD Fast Length (Momentum):
    Sets the fast EMA period for the Moving Average Convergence Divergence (MACD).
  • MACD Slow Length (Momentum):
    Sets the slow EMA period for the MACD.
  • MACD Signal Length (Momentum):
    Defines the signal line period for MACD analysis.

Market Session

  • Market Session (Market Session):
    Filters data based on predefined market sessions like “London” or “New York.”

Volume Threshold

  • Minimum Volume (Volume):
    Specifies the minimum volume threshold. Candles below this volume are ignored.

Usage Tips

  • Dynamic Volume: Great for identifying high-activity periods.
  • Candle Pattern Strength: Helps refine pattern analysis by emphasizing larger, more relevant candles.
  • Bollinger Bands and ATR: Useful for volatility and reversal setups.
  • Range and Percentiles: Ideal for pinpointing support/resistance levels.

Adjust filters based on your strategy and experiment to find the optimal combination for your trading style!

 

FVG Count & Filtering: A Powerful Confirmation Tool for (P)HOBs (V1.09)

This feature adds a highly valuable analytical layer to your Hidden Order Blocks (HOBs) and Partial Hidden Order Blocks (PHOBs) by tracking how many Fair Value Gaps (FVGs) each block is pierced by after its creation.

What It Does

  • Counts how many FVGs are crossed by the price after a (P)HOB has been formed.
  • Lets you filter out weak (P)HOBs, so only those with significant market activity (≥ X FVG crossings) remain visible.

The Theory Behind It

A Hidden Order Block that is revisited by price multiple times—specifically while forming Fair Value Gaps (FVGs)—is not being rejected immediately. Instead, it absorbs liquidity and still holds, showing strength and resilience.

Each additional FVG that forms through the block implies:

  1. Increased displacement activity through the zone.

  2. More liquidity captured around that level.

  3. Greater potential for the level to act as a powerful reaction zone once the market returns.

In essence:

The more FVGs that a (P)HOB survives, the more likely it is that smart money is defending this level.

These high-FVG-count HOBs often become key areas for strong reversals, continuations, or liquidity grabs.

How to Use the Filter

  • Enable the checkbox: Show FVG Count
  • Enter a minimum number (e.g., 3) into the field:
    • Filter (P)HOBs with ≥ X FVGs

This will only display (P)HOBs that have been pierced by 3 or more FVGs, letting you focus on those battle-tested levels that may carry more conviction.

Pro Tip

Use the FVG filter in combination with other high-confluence tools to isolate the most reliable (P)HOBs:Breaker Block Alignment: If your (P)HOB lies within the same price region as a valid breaker block, you’re looking at a powerful reaction zone supported by structural intent.

Fibonacci Retracements: When a (P)HOB coincides with golden Fib levels like 61.8% or 78.6%, it often signals zones where smart money is likely to re-engage.

Oscillators (e.g., RSI, Stoch RSI, or Jewel): If a (P)HOB with a high FVG count aligns with oversold or overbought conditions, you’ve got technical confirmation on top of structural strength.

The more of these layers align, the higher the probability your zone will act as a strong reaction point. Especially when multiple FVGs have pierced the block — that’s a sign it’s been stress-tested and is still holding.

Double Doube Double Hidden Orderblock on 23H (BTC)
Double Doube Double Hidden Orderblock on 23H (BTC)

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