Levels With Touch Color (Dotted Touch)

Engulfing Candles — Levels with Touch & Liquidity Sweep

This indicator detects bullish and bearish engulfing candlestick patterns and plots support/resistance levels based on these patterns. It also highlights touch points where price interacts with these levels and visualizes liquidity areas for potential buy and sell zones.

Features:

Detects bullish and bearish engulfing patterns

Plots fixed levels at the high or low of the engulfing candle

Pointed touch lines:

Level changes color when price touches the level without breaking it

Green for bullish touches, red for bearish touches

Liquidity visualization:

Buy-side liquidity displayed as a line below the touched bullish level

Sell-side liquidity displayed as a line above the touched bearish level

Clean visual design with no background boxes, keeping the chart uncluttered

Automatic management of historical lines to prevent chart overload

Fully customizable liquidity offset and max number of historical levels

How to use:

Look for engulfing candle levels forming on the chart.

Watch the touch lines (green/red) for potential price reaction areas.

Identify zones where stop-hunts or market liquidity might appear.

Combine with your strategy or price action tools to find entries or exits.

Inputs:

Max history lines — Limits how many historical levels are kept on the chart

Liquidity offset — Adjusts distance of liquidity lines from the original level

Notes:

Touch lines turn colored only when price interacts with the level but does not break it.

Liquidity lines extend a few bars forward for visual clarity.

Works on all timeframes.