Indicator
Fake Pin Bar & Engulfing Pattern DetectorFake Pin Bar & Engulfing Pattern Detector
This indicator is designed to detect Fake Pin Bar structures and standard Engulfing candle patterns directly on the chart.
A Fake Pin Bar is a price action pattern that appears after price forms a Mother Bar, then one or more Inside Bars, and finally produces a false breakout candle. The signal candle briefly breaks outside the Mother Bar range, but then returns back inside the structure. If that breakout candle also has a strong rejection wick and a relatively small body, the indicator marks it as a Fake Pin Bar.
The idea behind this pattern is simple: price attempts to break above or below a consolidation area, fails to continue, and closes back inside the previous range. This can show rejection, trapped breakout traders, or a possible reversal area.
How The Indicator Works
The script looks for three main components:
1. Mother Bar
A candle that defines the main high and low range.
2. Inside Bar Sequence
One or more candles after the Mother Bar that remain inside the Mother Bar range.
3. False Breakout Pin Bar
The signal candle must break only one side of the Mother Bar range and then return back inside it. For a bearish signal, price breaks above the Mother Bar high and rejects downward. For a bullish signal, price breaks below the Mother Bar low and rejects upward.
The indicator also detects standard bullish and bearish Engulfing patterns. An engulfing pattern is detected when the current candle body fully engulfs the previous candle body in the opposite direction.
Best Use Cases
This indicator is best used as a price action confirmation tool, not as a standalone trading system.
It can be useful around:
- Support and resistance areas
- Supply and demand zones
- Previous session highs and lows
- Liquidity sweep areas
- Consolidation breakouts
- Higher timeframe key levels
- Trend pullbacks
- Range boundaries
Fake Pin Bars are generally more meaningful when they appear at important market levels instead of random areas in the middle of a chart.
Settings
Minimum Wick Ratio
Controls how large the rejection wick must be compared to the full candle range. A higher value requires a stronger wick and produces fewer signals.
Maximum Body Ratio
Controls the maximum allowed candle body size compared to the full candle range. A lower value requires a smaller body and makes the pin bar condition stricter.
Maximum Inside Bar Count
Defines how many Inside Bars the script can look for after the Mother Bar. A higher value allows the indicator to detect longer consolidation structures.
Confirm Signals After Bar Close
When enabled, signals are confirmed only after the candle closes. This helps avoid signals changing during the live candle.
Require Body Inside Mother Bar
When enabled, the signal candle body must return fully inside the Mother Bar range. This makes Fake Pin Bar detection stricter.
Show Engulfing Candles
Turns standard bullish and bearish Engulfing candle detection on or off.
Show Pattern Details
Shows or hides the Mother Bar pattern box and high/low guide lines.
Label Text Size
Changes the size of the Fake Pin Bar signal labels.
Inside Bar Area Opacity
Controls the opacity of the pattern area shown on the chart.
Bullish Candle Color
Sets the color used for bullish Engulfing candles.
Bearish Candle Color
Sets the color used for bearish Engulfing candles.
Important Notes
This indicator does not place trades, does not calculate stop loss or take profit levels, and does not provide financial advice.
Signals should be combined with market structure, trend direction, volume, support/resistance, and proper risk management.
No price action pattern is perfect. Fake breakouts and engulfing candles can fail, especially in low-volume or choppy market conditions. Indicator
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Indicator
Engulfing [TradingFinder] Bullish & Bearish CandleStick Pattern🔵 Introduction
The candlestick engulfing pattern is important pattern in technical analysis that can be observed in candlestick charts. This pattern occurs when a complete candle engulfs or "engulfs" the body of a previous candle, meaning that the body of the new candle completely covers the body of the previous candle.
The candlestick engulfing pattern has two types: the bullish engulfing pattern and the bearish engulfing pattern.
• Bullish Engulfing Pattern: This pattern occurs when a market candle opens with a larger and higher body than the previous market candle and completely covers the body of the previous candle. This pattern may indicate the presence of strong buying pressure and a potential change in price direction upwards.
• Bearish Engulfing Pattern: This pattern occurs when a market candle opens with a larger and lower body than the previous market candle and completely covers the body of the previous candle. This pattern may indicate the presence of strong selling pressure and a potential change in price direction downwards.
The candlestick engulfing pattern is usually used as a valid signal for a change in price direction in the market and can enhance a combination of crossover investments and technical analysis. However, it should always be evaluated alongside other indicators and market factors, and counter decisions should be made accordingly.
🔵 Recognition Method
Correct, the candlestick engulfing pattern is one of the important patterns in technical analysis that is typically used as a strong signal for a valid change in price direction in the market. This pattern occurs when a candle (usually in the market) opens with a larger and higher (for bullish engulfing pattern) or lower (for bearish engulfing pattern) body than a previous market candle and completely covers the body of the previous candle.
Example of Bullish Engulfing Pattern:
• First Candle: A bearish (downward) candle with a small red body.
• Second Candle: A bullish (upward) candle with a larger body that completely covers the body of the previous candle.
This pattern may indicate a change in price direction from downward to upward.
Example of Bearish Engulfing Pattern:
• First Candle: A bullish (upward) candle with a small green body.
• Second Candle: A bearish (downward) candle with a larger body that completely covers the body of the previous candle.
This pattern may indicate a change in price direction from upward to downward.
The most important point is that the candlestick engulfing pattern should be carefully considered and always evaluated alongside other market indicators and overall conditions. For example, the engulfing pattern near important support or resistance levels, during significant market command changes, or accompanied by other technical signals can have greater signaling power.
🟣 "Bullish Engulfing" Candle
• The first candle is bullish and the second candle is bearish.
• At the end of a downtrend.
• The closing of the first candle is above the opening of the second candle.
• The high of the first candle is higher than the high of the second candle.
Optimal Condition:
• The closing of the first candle is higher than the high of the second candle.
• More than 80% of the first candle is bullish.
🟣 "Bearish Engulfing" Candle
• The first candle is bearish and the second candle is bullish.
• At the end of an uptrend.
• The closing of the first candle is below the opening of the second candle.
• The low of the first candle is lower than the low of the second candle.
Optimal Condition:
• The closing of the first candle is below the opening of the second candle.
• More than 80% of the first candle is bearish.
🔵 Settings
The "Engulf Filter" option allows the "Optimal Condition" to be executed and will show fewer candlesticks.
🔵 Status
Off: Default mode, showing more identifications.
• Green color indicates optimal "Bullish Engulfing" candles.
• Red color indicates optimal "Bearish Engulfing" candles.
On: By changing the default to "On," the number of identifications decreases and the optimal condition is applied.
• Blue color indicates "Bullish Engulfing" candles.
• Black color indicates "Bearish Engulfing" candles.
🟣 Important Note
"Engulfing" candles are very useful signals in the direction of the overall trend, but we do not expect a suitable movement from "Engulfing" candles against the trend.
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