Engulfing Sweep of the Order Book - Insights For Bot Use

This algo study surfaces Sweeps that engulf an extreme amount of transactions across the order book.

The sweeping of the order book is one of the primary order flow tells that we use in our trading.

This sweeping can signify a tradeable change in direction in the market.

This type of order flow information is something that algos do a good job of surfacing and more importantly, bots do a good job of taking advantage of.

These are the Out-Of-The-Box Study Settings:

To set a white border around the bar update the study's subgraph settings and also the chart's Graphic Settings

Study Subgraph:

Chart Graphic Settings:

These settings are exposed via the Sierra Chart menu and select Chart > Graphic Settings - Chart > Candlestick Up Outline & Candlestick Down Outline.

Also, un-check the option on this same dialogue box, "Use Global Settings Instead of These Settings".

There is also a also bot signal for this. 

This bot signal can be used without a pivot in price or a mandatory pivot in price. 

You can include this in the standard 'Order Flow with Pivot' bot - which is my own (Carl's) primary bot. 

Fading an Engulfing Sweep:

You will frequently see a Conclusionary Engulfing Sweep at the end of a move.   

This Conclusionary Engulfing Sweep can be faded by a bot.

You can either directly fade the Engulfing Sweep, which is risky, or you can configure a bot to look for a Conclusionary Engulfing Sweep a 'Bar Ago' as a precondition for entry - which is much less risky.

It is advised to use the SceetoBot Dashboard to help you visualize setups so that you can train your eye to know when and where you may want to use this bot.

More information on how to quickly view a large sampling of setups can be found here:

https://youtu.be/hVchxHc50Ic

Incorporating Conclusionary Engulfing Sweep into a SceetoBot:

Use the 'BarsAgo' feature to build a sequence that the bot must follow in order to trigger.

In this example, the bot is instructed to:

1) Ensure that there was an Engulfing Sweep (either standard or Doji) a bar ago

2) Have a pivot in price on the current bar (e.g. - Pivot Low for long bots)

3) Have any one of the following:

1) Book Pressure Extended (UP) >= 200

2) Engulfing Sweep Up

3) Orange Bar

Fading an Engulfing Sweep:

In this SceetoBot configuration, the entry will occur at the close of the Engulfing Sweep bar in the opposite direction of the Sweep.