Basic/Fractal Engulfing Candle Filtered EMA/ATR

Basic/Fractal Engulfing Candle Filtered EMA/ATR

This clean and flexible indicator is designed to highlight high-probability engulfing candle patterns by applying a smart combination of filters based on ATR, EMA, and fractal swing high/low logic.

Engulfing candles are commonly used for spotting potential trend reversals or momentum continuation zones—but without proper filtering, they can produce noise. This script enhances reliability by giving traders control over:

ATR Filter: Limits signals to candles within a specific size range relative to the Average True Range, filtering out excessive volatility.

EMA Filter: Confirms trend direction using an exponential moving average. Engulfing candles are only valid if aligned with or against the EMA depending on user configuration.

Fractal Swing High/Low Filter: Requires engulfing candles to occur near local highs (for bearish setups) or lows (for bullish setups), identifying potential turning points in market structure.

Highlights:

Fully customizable with intuitive inputs

Clean chart visuals with triangle markers for bullish (🟦 aqua) and bearish (🟪 fuchsia) engulfing signals

Adaptive EMA color changes based on price position (above = bullish, below = bearish)

Perfect for traders who want a smarter engulfing candle tool that adapts to market conditions, price structure, and trend confirmation.

*Highly recommend using this in confluence with many other indicators of my own/your liking.

*You can use this very well on memecoins and alt coins, works for trading, swing trading, and long term analysis. Lower time frames recommended.

*includes alerts functionality.