RSI EMA200 Engulfing Script

The download and this preview resolve to the same reviewed file. SHA-256: db2cc1860420cb3b9d0aa656d542b6ec7c9c64e449521fdb8979bf15f57b8c44

-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW RSI EMA200 Engulfing v1.0.0
--
-- Combines a candlestick pattern with two trend filters. The EMA 200 gives the
-- long-term side of the market and RSI(14) against the 50 line gives the
-- medium-term momentum side. An engulfing candle is the trigger.
--
-- HIGHER: a bullish candle whose body engulfs the previous bearish body
--         closes above EMA 200 while RSI(14) is above 50.
-- LOWER:  a bearish candle whose body engulfs the previous bullish body
--         closes below EMA 200 while RSI(14) is below 50.
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.

instrument {
    name = "IQOW RSI EMA200 Engulfing",
    short_name = "IQOW ENGULF",
    overlay = true
}

input_group {
    "1. Trend filter",
    ema_period = input (200, "EMA period", input.integer, 2, 500)
}

input_group {
    "2. RSI",
    rsi_period = input (14, "RSI period", input.integer, 2, 100),
    rsi_midline = input (50, "RSI midline", input.double, 30, 70, 1, false)
}

input_group {
    "Display and advice",
    ema_visible = input { default = true, type = input.plot_visibility },
    signals_visible = input { default = true, type = input.plot_visibility },
    advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}

input_group {
    "Colors",
    ema_color = input { default = "#DBCF0D", type = input.color },
    ema_width = input { default = 2, type = input.line_width },
    higher_color = input { default = "#25E154", type = input.color },
    lower_color = input { default = "#FF6C58", type = input.color },
    signal_text_color = input { default = "#FFFFFF", type = input.color }
}

ema_line = ema (close, ema_period)
rsi_value = rsi (close, rsi_period)

-- Current-bar scalars for the Lua rule logic.
local open_now = get_value (open, nil)
local close_now = get_value (close, nil)
local open_previous = get_value (open [1], nil)
local close_previous = get_value (close [1], nil)
local ema_now = get_value (ema_line, nil)
local rsi_now = get_value (rsi_value, nil)

-- Wait until the EMA has a full period of history behind it.
local has_history = get_value (close [ema_period], nil) ~= nil

local data_is_ready =
    has_history and
    open_now ~= nil and
    close_now ~= nil and
    open_previous ~= nil and
    close_previous ~= nil and
    ema_now ~= nil and
    rsi_now ~= nil

-- Bullish engulfing: a bearish candle followed by a bullish candle whose body
-- covers the whole previous body.
local bullish_engulfing =
    data_is_ready and
    close_previous < open_previous and
    close_now > open_now and
    open_now <= close_previous and
    close_now >= open_previous

-- Bearish engulfing: a bullish candle followed by a bearish candle whose body
-- covers the whole previous body.
local bearish_engulfing =
    data_is_ready and
    close_previous > open_previous and
    close_now < open_now and
    open_now >= close_previous and
    close_now <= open_previous

higher_setup = conditional (
    bullish_engulfing and close_now > ema_now and rsi_now > rsi_midline
)

lower_setup = conditional (
    bearish_engulfing and close_now < ema_now and rsi_now < rsi_midline
)

-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
    get_value (higher_setup [1], false) and
    not get_value (higher_setup [2], false)
)

confirmed_lower = conditional (
    get_value (lower_setup [1], false) and
    not get_value (lower_setup [2], false)
)

if ema_visible then
    plot (ema_line, "EMA 200", ema_color, ema_width)
end

if signals_visible then
    plot_shape (
        confirmed_higher,
        "ENGULF HIGHER",
        shape_style.triangleup,
        shape_size.small,
        higher_color,
        shape_location.belowbar,
        -1,
        "HIGHER",
        signal_text_color
    )

    plot_shape (
        confirmed_lower,
        "ENGULF LOWER",
        shape_style.triangledown,
        shape_size.small,
        lower_color,
        shape_location.abovebar,
        -1,
        "LOWER",
        signal_text_color
    )
end

-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
    get_value (confirmed_higher, false) and
    not get_value (confirmed_lower, false) then
    advise (advice.buy)
elseif advice_enabled and
    get_value (confirmed_lower, false) and
    not get_value (confirmed_higher, false) then
    advise (advice.sell)
else
    advise (advice.neutral)
end