engulfing candles indicator for TradingView
engulfing candles are one of the most popular reversal patterns in trading.
but here's the problem: manually spotting them takes time. you're scanning every timeframe, every session, looking for that perfect two-candle pattern where the second candle completely engulfs the first.
miss a few minutes of charts, and you miss the pattern. get distracted, and the setup is gone.
the engulfing candles indicator eliminates this manual work entirely.
it automatically highlights bullish and bearish engulfing patterns as they form in real-time on your TradingView charts. no scanning required. no patterns missed.
even better: it connects to edgeful's engulfing candles report, which shows you average continuation data. use this data to set profit targets based on historical performance instead of guessing where to exit.
in this article, you'll learn what the engulfing candles indicator spots, how to use continuation data for profit targets, and how to combine engulfing patterns with other indicators for stronger setups.
table of contents
- what is the engulfing candles indicator?
- ES engulfing candles stats (30min, NY session)
- how the engulfing candles indicator works on TradingView
- using the engulfing candles indicator for profit targets
- engulfing candles indicator vs manual spotting
- customizing the engulfing candles indicator
- combining engulfing candles with other indicators
- does the engulfing candles indicator work for stocks?
- frequently asked questions
- key takeaways
what is the engulfing candles indicator?
the engulfing candles indicator is a TradingView tool that automatically identifies and highlights engulfing candle patterns on your chart.
here's what it does:
identifies bullish engulfing patterns: bearish candle followed by larger bullish candle that completely engulfs it
identifies bearish engulfing patterns: bullish candle followed by larger bearish candle that completely engulfs it
highlights patterns in real-time: marks engulfing candles as they form during the session
what makes a candle "engulfing"?
bullish engulfing requirements:
- previous candle is bearish (red)
- current candle is bullish (green)
- current candle's body completely engulfs previous candle's body
bearish engulfing requirements:
- previous candle is bullish (green)
- current candle is bearish (red)
- current candle's body completely engulfs previous candle's body
the key word is "completely." the second candle's body must fully engulf the first candle's body. partial overlaps don't count.
the engulfing candles indicator applies these rules automatically, so you don't have to scan charts manually looking for valid patterns.
ES engulfing candles stats (30min, NY session)
here's the actual data for ES (S&P 500 futures) on 30-minute charts during the NY session over the last 6 months:
average performance:
- bullish engulfing continuation: 0.18%
- bearish engulfing continuation: -0.19%
max performance:
- bullish engulfing max: 1.32%
- bearish engulfing max: -1.32%
what this data means
when a bullish engulfing candle forms on ES (30min chart), price continues up an average of 0.18% from the close of that candle before invalidation.
when a bearish engulfing candle forms, price continues down an average of 0.19% from the close before invalidation.
this gives you a data-backed profit target. instead of guessing "I'll take profits at 20 points," you know the average continuation is 0.18%, which translates to approximately 10-11 points on ES.
average vs max
average: this is the typical continuation you can expect most of the time. use this for setting realistic profit targets.
max: this is extreme continuation that happens occasionally—outliers. on ES, the max is 1.32%, which is 7x larger than the average.
don't target max moves. they're rare. if you wait for 1.32% continuation every time, you'll give back profits on most trades.
target the average. take profits there. let runners go for max if you want, but lock in the high-probability target first.
what is "invalidation"?
continuation is measured until price crosses back through the opposite end of the engulfing candle.
for bearish engulfing: measured from close to low, until price crosses back above the engulfing candle's high. once price goes above that high, the pattern is invalidated.
for bullish engulfing: measured from close to high, until price crosses back below the engulfing candle's low. once price goes below that low, the pattern is invalidated.
this ensures you're measuring actual continuation in the direction of the pattern, not including reversals that negate it.
how the engulfing candles indicator works on TradingView
the engulfing candles indicator highlights patterns automatically as they form during your trading session.
automatic pattern detection
when a valid engulfing candle forms, the indicator:
- identifies the pattern in real-time (checks if second candle engulfs first)
- highlights the candle on your chart
- marks it as bullish or bearish engulfing
no manual scanning required. open your chart, and engulfing patterns are already marked for you.
works across multiple timeframes
customize the engulfing candles indicator for any timeframe:
5-minute charts: spots smaller, faster engulfing patterns
15-minute charts: medium timeframe patterns
30-minute charts: larger patterns with bigger continuation potential
1-hour+ charts: cleanest patterns, strongest signals
the average continuation data changes based on timeframe. 30-minute engulfing candles on ES show 0.18% average continuation. 5-minute patterns might show 0.05% average continuation.
always check the engulfing candles report filtered for your specific timeframe before setting profit targets.
combining with the engulfing candles report
the engulfing candles indicator shows you WHERE patterns form.
the engulfing candles report shows you HOW FAR they typically continue.
use both together:
- spot the engulfing candle on your chart (indicator)
- check average continuation for that pattern (report)
- set your profit target at the average continuation distance
this workflow turns engulfing candles from subjective pattern trading into data-backed strategy.
using the engulfing candles indicator for profit targets
the engulfing candles indicator helps you set profit targets based on historical continuation data instead of guessing.
setting targets based on average continuation
example: bearish engulfing candle forms on ES at 5,850.
from the report, you know average bearish continuation on 30min charts is -0.19%.
calculation: 5,850 × 0.0019 = approximately 11 points
target: 5,850 - 11 = 5,839
your profit target is 5,839 (the average continuation level).
why average matters more than max
some engulfing candles continue 1.32% (the max from ES data). most don't.
if you target max continuation every time, you'll give back profits on 80%+ of trades waiting for a move that rarely happens.
here's the math:
targeting average (0.18%): you capture the move most of the time
targeting max (1.32%): you capture the move less than 10% of the time, and give back profits on the other 90%
target the average. take profits there. if you want to let runners go for the max, that's fine—but lock in the high-probability target first.
adjusting for your timeframe
the engulfing candles indicator works on any timeframe, but continuation changes:
5-minute engulfing candles: smaller average continuation (typically 0.05-0.10%)
30-minute engulfing candles: medium continuation (0.18-0.19% on ES)
1-hour engulfing candles: larger continuation (potentially 0.30-0.40%)
check the engulfing candles report filtered for your specific timeframe before setting targets. don't use 30min data for 5min trades—the continuation is completely different.
customizing the engulfing candles indicator
the engulfing candles indicator offers several customization options.
change timeframe
select 5min, 15min, 30min, 1hr, or any timeframe you trade.
the engulfing candles indicator adjusts to highlight patterns on your chosen timeframe.
remember: continuation data changes with timeframe. always verify average continuation for your specific timeframe in the report.
changing the shapes & plotting styles
you can change the shape, color, and placement of the engulfing candles indicator directly on TradingView.
combining engulfing candles with other indicators
the engulfing candles indicator works best when combined with other edgeful tools for confluence.
engulfing candles + FVGs
when a bullish engulfing candle forms inside a bullish FVG, you have double confluence for continuation upward.
fair value gap shows demand imbalance. engulfing candle shows reversal momentum. together, they create a stronger setup than either alone.
engulfing candles + fibonacci levels
bullish engulfing forming at the 0.618 fibonacci retracement = high-probability reversal zone.
the fib level shows where retracements typically end. the engulfing candle confirms the reversal is starting. stack both for maximum confidence.
engulfing candles + previous day's range
bearish engulfing forming right at previous day's high = strong resistance confluence.
two independent data sources (previous day high + bearish engulfing) both pointing to the same level. this is the type of confluence that increases win rate.
engulfing candles + pivot points
bullish engulfing at S1 pivot point = support + reversal pattern alignment.
when calculated support levels align with engulfing patterns, those setups have higher probability of working.
engulfing candles + automated trading
the engulfing candles indicator also powers edgeful's engulfing candles algo, which automatically trades engulfing patterns with data-backed targets and risk management.
if you trade engulfing candles manually and want to automate the process, the algo executes the same strategy 24/7 without you watching charts.
does the engulfing candles indicator work for stocks?
yes, the engulfing candles indicator works on stocks, futures, forex, and crypto.
for stocks
session is always 9:30am-4:00pm ET for stocks, so setup is straightforward.
the engulfing candles indicator highlights patterns during regular trading hours and ignores extended hours (unless you specifically want extended hours included).
for futures, forex, crypto
select your trading session (NY, London, Tokyo) to ensure the indicator only highlights patterns during your actual trading hours.
if you trade the London session on EUR/USD, set the indicator to London session. patterns that form during NY or Tokyo hours won't show up.
continuation varies by ticker
ES shows 0.18% average bullish continuation. NQ might show 0.25%. AAPL might show 0.15%. Bitcoin might show 0.50%.
always check the engulfing candles report for your specific ticker before setting profit targets. don't assume ES data applies to everything you trade.
frequently asked questions
what is the engulfing candles indicator?
the engulfing candles indicator automatically identifies and highlights bullish and bearish engulfing candle patterns on TradingView as they form in real-time. on ES (30min, NY session), bullish engulfing candles continue 0.18% on average and bearish continue -0.19%, helping you set data-backed profit targets based on historical performance.
how do I add the engulfing candles indicator to TradingView?
log into edgeful, connect your TradingView account, and look for "Engulfing Candles" in your invite-only indicators. the indicator highlights engulfing patterns automatically as they form during your selected trading session.
what's the difference between average and max continuation?
average continuation is the typical move you can expect most of the time (0.18% for bullish engulfing on ES 30min charts). max continuation is the extreme outlier move (1.32% on ES). always target the average for realistic profit targets, not the max.
does the engulfing candles indicator work on all timeframes?
yes, you can use the engulfing candles indicator on 5min, 15min, 30min, 1hr, or any timeframe. continuation data varies significantly by timeframe—30min patterns show larger continuation than 5min patterns. always check the engulfing candles report filtered for your specific timeframe.
can I automate trading with engulfing candles?
yes, edgeful offers an engulfing candles algo that automatically trades engulfing patterns with data-backed profit targets, risk management, and 24/7 execution without manual chart watching.
key takeaways
- the engulfing candles indicator automatically spots bullish and bearish engulfing patterns on TradingView
- saves hours of manual chart scanning every week
- session-specific: only highlights patterns within your selected trading session (NY, London, Tokyo)
- on ES (30min, NY session): bullish engulfing avg continuation 0.18%, bearish avg -0.19%
- max continuation: 1.32% bullish, -1.32% bearish (outliers—don't target these)
- use average continuation data to set realistic profit targets
- continuation measured until "invalidation" (price crosses back through opposite end of pattern)
- works on multiple timeframes: 5min, 15min, 30min, 1hr, daily
- view continuation in percent or points/dollars depending on preference
- combine with FVGs, fibonacci, previous day's range, pivot points for stronger setups
- works on stocks, futures, forex, crypto
- continuation data varies by ticker and timeframe—always check report for your specific instrument
- for automation, check out edgeful's engulfing candles algo for 24/7 pattern trading
p.s. want access to the engulfing candles indicator and 35+ other TradingView indicators? get started with edgeful here
