Big Shadow by Walter Peters v1.0
This is an indicator for the Big Shadow (engulfing candle) that Walter Peters teaches in his course and book "Naked Forex". I hope this will help other "Naked" traders to identify this candle pattern.
//Based on Big Shadow Strategy by Walter Peters (fxjake.com and nakedforexnow.com) //Coded by Fred Ferrell study(title = "Big Shadow by Walter Peters v1.0", overlay = true) PercentageFromClose = input(20, minval=1, maxval=99, title="Percentage input for the range a candle has to close within the high or low on an up or down candle respectively.") PercentageFromCloseFormula = PercentageFromClose * .01 roomToTheLeftPeriod = input(7, minval=2, maxval=30, title="Room To Left Interval Check") range = high - low //Largest candle range within last 10 days. Need to find cleaner code. largestCandle = high-low > high[1]-low[1] and high-low > high[2]-low[2] and high-low > high[3]-low[3] and high-low > high[4]-low[4] and high-low > high[5]-low[5] and high-low > high[6]-low[6] and high-low > high[7]-low[7] and high-low > high[8]-low[8] and high-low > high[9]-low[9] and high-low > high[10]-low[10] //Bearish Engulfing Candle higherHigh = high > high[1] bearishEngulfing = close[1] > open[1] and open > close and open >= close[1] and low[1] >= close and open - close > close[1] - open[1] //Room to left rising is checking that last 7 candle highs are lower than entry candle roomToTheLeftRising = rising(high,roomToTheLeftPeriod) //shavedBarDown is checking that distance from low and close is less than 10% (default) of candle body shavedBarDown = close <= (low + (range * PercentageFromCloseFormula)) //Coloring of candle barcolor(higherHigh and bearishEngulfing and roomToTheLeftRising and largestCandle and shavedBarDown? red : na) //Arrow and text on chart bearishNote = higherHigh and bearishEngulfing and roomToTheLeftRising and largestCandle and shavedBarDown plotshape(bearishNote, title="Bearish Engulfing Candle", location=location.abovebar, color=red, style=shape.arrowdown, text="Bearish\nBig\nShadow") //Bullish Engulfing Candle lowerLow = low < low[1] bullishEngulfing = open[1] > close[1] and close > open and close >= high[1] and close[1] >= open and close - open > open[1] - close[1] //Room to left falling is checking that last 7 candle lows are higher than entry candle roomToTheLeftFalling = falling(low,roomToTheLeftPeriod) //shavedBarUp is checking that distance from high and close is less than 10% (default) of candle body shavedBarUp = close >= (high - (range * PercentageFromCloseFormula)) //Coloring of candle barcolor(lowerLow and bullishEngulfing and roomToTheLeftFalling and largestCandle and shavedBarUp? green : na) //Arrow and text on chart bullishNote = lowerLow and bullishEngulfing and roomToTheLeftFalling and largestCandle and shavedBarUp plotshape(bullishNote, title="Bullish Engulfing Candle", location=location.belowbar, color=lime, style=shape.arrowup, text="Bullish\nBig\nShadow")