EMA21 Slope and Curvature with Engulfing Order Block Context

Summary

This document describes an indicator intended to identify trend-following engulfing patterns and mark order blocks using the range of the engulfing pattern’s first candle. Its accompanying calculation estimates the slope and curvature of a 21-period moving average, smooths those measures, and scales them for display. A 21 and 55 period simple moving average filter is mentioned for trend direction, while a green chart background indicates positive smoothed slope and curvature. The material is a code conversion and description, not a performance study; it supplies no trading results or validation evidence.

The author specifically notes that the method does not require an engulfing to follow a retracement, and suggests treating post-retracement order blocks as more relevant. That discretionary caveat affects how signals may be interpreted. The document does not specify complete entry, exit, or risk rules, so it should be understood as an indicator concept rather than a fully defined strategy.

Key ideas

• The indicator uses engulfing patterns to identify candidate trend-following order blocks.
• It bases each order block on the range of the engulfing pattern’s first candle.
• Smoothed slope and curvature estimates are calculated around a 21-period moving average.
• A 21 and 55 period moving average trend filter is described.
• The author suggests considering engulfings after a retracement because the indicator does not enforce that condition.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.