Hey traders! Today, we’re diving into Linda's Coil, a handy indicator for MetaTrader 5 that helps you spot those elusive "engulfed" candlesticks using Price Action strategies.
This tool comes with three key input parameters that you’ll want to get familiar with:
- Period - This sets your search range;
- Method - Choose your search method:
- Engulfed - Looks for engulfed candlesticks only;
- Engulfed or Equal - Searches for either engulfed or equal candlesticks.
- Type - Defines your search type:
- Previous - Compares with the previous candlestick;
- First - Compares with the first candlestick within your specified search range.
How It Works
The indicator compares the current candlestick against either the previous one (if you select the Previous type) or the first one in the defined search range (if you select the First type).
If the current candlestick's value is lower than the previous one (using the Engulfed method) or less than or equal to it (using the Engulfed or Equal method), it means that the current candlestick is engulfed by the previous one. When this happens, the indicator marks your price chart accordingly.
Fig.1. Comparing to the previous candlestick
Fig.2. Comparing to the first candlestick within the range
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