OPEN-SOURCE SCRIPT
Candle 2 (C2 Engulfing) [ArionAlgo]
Candle 2 (C2 Engulfing) [ArionAlgo]
This indicator focuses on Candle 2 (C2) as the primary displacement event within a structured engulfing framework. Instead of treating Candle 3 as the main expansion, this model emphasizes C2 as the true momentum shift — highlighting where liquidity is taken and price begins delivering in the new direction.
🔹 Core Concept
• Candle 2 represents displacement: the decisive shift in order flow that signals potential continuation or reversal.
• Candle 3 serves as optional follow-through expansion, confirming momentum after displacement occurs.
• An optional Strict C2 rule enforces higher-probability structure by requiring the close to occur inside or beyond the Candle 1 body on the correct side.
🔹 What the Script Does
• Detects bullish and bearish C2 displacement conditions based on engulfing behavior and structural rules.
• Marks C2 and C3 events directly on the chart with clear visual labels.
• Builds dynamic zones from candle structure to help traders frame reaction areas and refine entries.
• Plots optional levels derived from prior candle structure for additional context.
🔹 Customization & Control
• Independent toggles for Candle 2 displacement and Candle 3 expansion.
• Optional reversal filter using swing extremes.
• Wick-threshold filtering to avoid weak or inefficient candles.
• Adjustable colors, transparency, levels, and zone visibility for clean integration into any chart style.
🔹 Alerts
Built-in alerts trigger on confirmed C2 displacement and C3 expansion at bar close, making it easy to integrate into discretionary or rule-based workflows.
This script is shared freely with the trading community in hopes it helps someone refine their understanding of price delivery and create meaningful opportunities through disciplined trading. It is a visual framework — not financial advice — so always apply sound risk management.
— ArionAlgo
This indicator focuses on Candle 2 (C2) as the primary displacement event within a structured engulfing framework. Instead of treating Candle 3 as the main expansion, this model emphasizes C2 as the true momentum shift — highlighting where liquidity is taken and price begins delivering in the new direction.
🔹 Core Concept
• Candle 2 represents displacement: the decisive shift in order flow that signals potential continuation or reversal.
• Candle 3 serves as optional follow-through expansion, confirming momentum after displacement occurs.
• An optional Strict C2 rule enforces higher-probability structure by requiring the close to occur inside or beyond the Candle 1 body on the correct side.
🔹 What the Script Does
• Detects bullish and bearish C2 displacement conditions based on engulfing behavior and structural rules.
• Marks C2 and C3 events directly on the chart with clear visual labels.
• Builds dynamic zones from candle structure to help traders frame reaction areas and refine entries.
• Plots optional levels derived from prior candle structure for additional context.
🔹 Customization & Control
• Independent toggles for Candle 2 displacement and Candle 3 expansion.
• Optional reversal filter using swing extremes.
• Wick-threshold filtering to avoid weak or inefficient candles.
• Adjustable colors, transparency, levels, and zone visibility for clean integration into any chart style.
🔹 Alerts
Built-in alerts trigger on confirmed C2 displacement and C3 expansion at bar close, making it easy to integrate into discretionary or rule-based workflows.
This script is shared freely with the trading community in hopes it helps someone refine their understanding of price delivery and create meaningful opportunities through disciplined trading. It is a visual framework — not financial advice — so always apply sound risk management.
— ArionAlgo
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.