This script is a custom trading strategy that combines several technical analysis indicators and candlestick patterns to generate buy and sell signals for XAU/USD (Gold).
This script creates a trading strategy based on a combination of the following:
- RSI: Identifies overbought/oversold conditions.
- Supertrend: Helps identify the overall trend (bullish or bearish).
- Candlestick Patterns: Bullish and bearish engulfing patterns as potential reversal signals.
- Market Structure (SMC): Identifies swing highs and lows to assess price action.
- EMA: Although calculated, they are not directly used in the signals but could assist in identifying trend direction.
When a buy or sell signal occurs, labels are drawn on the chart, with lines connecting the signals to the relevant candlestick, providing visual cues for traders.