The Adaptive Engulfing RSI Strategy is a versatile trading system that combines classic Japanese candlestick analysis with adaptive risk management. It detects bullish and bearish engulfing patterns, filters them through a configurable RSI threshold and validates entries with a Candle Stability Index to reduce false signals. The dynamic stop loss adapts either to the entry price or to the minimum of a retracement period, offering greater flexibility in different market conditions.
Entries are generated when a bullish engulfing candle coincides with RSI confirmation and short-term price weakness, while exits are triggered on bearish engulfing patterns supported by RSI overbought readings and recovery signals. Visual labels highlight each BUY, SELL and STOP LOSS event directly on the chart, with customizable color schemes and styles that make it intuitive for quick decision making.
Ideal for: Traders who operate with price action and candle patterns, but seek additional confirmations through technical indicators such as RSI. Especially useful in forex, cryptocurrencies, indices and commodities, where volatility demands precision in entries and exits. Compatible with MT4, MT5, NinjaTrader and cTrader.
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