Engulfing Pattern Plus One: A Three-Bar Price Pattern

Summary

The document introduces an indicator named Engulfing Pattern Plus One. It defines the setup as a current bar whose high and low fully encompass the ranges of the preceding two bars. The description therefore uses the full intrabar range rather than comparing only opening and closing prices. On a chart, arrows mark detected occurrences, while manually drawn rectangles are used to illustrate the pattern.

The material is a brief visual description, not a trading system: it gives no bullish or bearish interpretation, entry or exit rules, timeframe, market context, or performance evidence. It also does not explain how the indicator handles gaps, overlapping bars, or confirmation after a signal. Traders would need to define those details and test the pattern before treating it as actionable.

Key ideas

• The pattern requires the current bar’s high and low to contain the ranges of the prior two bars.
• The description evaluates full bar ranges rather than candle bodies alone.
• Arrows identify pattern occurrences, and rectangles illustrate the setup on a chart.
• The document provides no direction, trade rules, or evidence of profitability.

Tags

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