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Bullish Engulfing (for long trades)

The strategy is based on 2 candlestick patterns.

A buy is generated when the following conditions occur over the previous 2 candles –

1.The overall trend is down

2.A red candle is followed by a green candle

3.The open of the green candle is lower than the close of the red candle

4.The close of green candle is greater than the open of the red candle.

The strategy is useful to identify long trades only. The sell signal (as defined by Sell Script) given here is based on an arbitrary logic, consider the sell script as a place holder here. The trader can define his own sell logic. For example sell after realizing 5% profits.

Buy script

Sell script

Additional notes

You can read more about Bullish Engulfing pattern here - http://zerodha.com/varsity/chapter/multiple-candlestick-patterns-part-1/