| PART | Part | Description | ||
|---|---|---|---|---|
| 1 | INTRODUCTION | Product introduction, what the product helps you with | ||
| 2 | INSTALLATION & SETUP | System necessities, step-by-step set up information | ||
| Information to Putting in Free Indicators and EAs Included with the Mirage Buying and selling System Buy | ||||
| 3 | INTERFACE DISPLAY | Clarification of the elements displayed on the chart | ||
| Consumer Information: Buying and selling Traces & Sign Monitoring System | The system routinely attracts Entry, Cease Loss, and Take Revenue traces (TP 1–4) on the chart, tracks worth motion for hits, data Win/Loss outcomes, and shows real-time efficiency statistics. | |||
| Consumer Information : Visualization, Zone Fill, Sign Dashboard & Cancelled Indicators | Whenever you connect an indicator to a chart, the system renders the next visible elements for every detected sign | |||
| Consumer Information: MTF SCAN & Dashboard Consumer Information | MTF SCAN routinely scans all Market Watch symbols throughout 8 timeframes (M1 to W1) and shows outcomes on a Dashboard grid straight in your chart. | |||
| Consumer Information : Chart Theme Consumer Information | Chart Theme is a characteristic that adjustments the complete chart colour scheme in MetaTrader 5 — together with the background, candles, grid, textual content, and Bid/Ask traces — with a single click on. | |||
| 4 | CORE CONCEPTS | Basic ideas that the system is constructed upon | ||
| Consumer Information: Market Construction Performance within the Buying and selling System | Identifies pattern route (Uptrend, Downtrend, Ranging) by analyzing swing highs/lows, and detects key occasions: BOS (pattern continuation) and CHoCH (potential pattern reversal). | |||
| Consumer Information : Sign Sorts, States, and Lifecycle | A sign is the system’s notification when it detects a qualifying candlestick sample on the chart. Every sign tells you the anticipated worth route and supplies instructed entry, cease loss, and take revenue ranges. | |||
| 5 | SIGNAL FILTERS | Filters that refine and validate buying and selling indicators | ||
| Consumer Information: Commerce Course (Course Filter) within the Buying and selling System | Defines the allowed buying and selling route (Purchase solely, Promote solely, each, or neither) as the primary filter earlier than trying to find entry indicators, primarily based on present market pattern. | |||
| Consumer Information: Sign Zone Filter within the Buying and selling System | Eliminates indicators not close to vital worth zones, retaining solely these related to market constructions (swing excessive/low, BOS, CHoCH) to scale back noise. | |||
| Consumer Information: StoplossHunt Filter Consumer Information — Filtering “SL Sweep” Indicators | Identifies higher-probability indicators by checking whether or not worth “swept stoploss” earlier than forming a sample. | |||
| Consumer Information : Excessive Zone Filter |
Excessive Zone Filter is a sign filtering characteristic that helps keep away from getting into trades when worth is on the prime or backside of a Donchian worth channel. | |||
| Consumer Information: Reverse Sign Filter | The Reverse Sign Filter is an automated characteristic that stops new indicators from showing when you have already got an lively commerce working in the other way.The precept could be very easy: Do not buy if you’re promoting. Do not promote if you’re shopping for. | |||
| Consumer Information : High quality Filter Consumer Information | High quality Filter is a characteristic that helps you obtain solely the most effective indicators — worth patterns fashioned clearly, with balanced proportions and excessive reliability — and reject weak indicators, boring patterns, and people beneath commonplace. | |||
| 6 | TRADE MANAGEMENT | |||
| Consumer Information : Danger/Reward & SL Methodology Consumer Information | Danger/Reward (R:R) is the ratio between the sum of money you settle for dropping (Danger) and the sum of money you anticipate to achieve (Reward) in a single commerce. | |||
| Consumer Information: Trailing Cease Loss (TSL) Consumer Information | Common Cease Loss (SL) stays mounted in a single place. You set SL at 1990.00, and it stays there endlessly — even when worth has risen to 2030.00.Trailing Cease Loss (TSL) is totally different. It routinely strikes in your favor when worth advances. As worth strikes up, TSL strikes up with it. When worth stalls or reverses, TSL holds the most effective place it reached. | |||
| 7 | CONFIGURATION PARAMETERS GUIDE | Detailed information to every configuration parameter | ||
| SIGNAL SCANNING CONFIGURATION GUIDE – MIRAGE TRADING SYSTEM EA | Information to mastering sign scanning settings inside the Inputs tab, optimizing commerce discovery on a single chart or throughout the complete market. | |||
| 8 | ALERTS & NOTIFICATIONS | |||
| Consumer Information: Alerts & Notifications Consumer Information | Configure push notifications, and on-screen popups when new indicators are detected. | |||
| 9 | SYSTEM RISKS & LIMITATIONS | Notes on system dangers and limitations |
1. INTRODUCTION
HammerTradingSystem 1.00
Bullish Reversal and Bearish Warning at Development Turning Factors
Writer: Ich Khiem Nguyen | MQL5: https://www.mql5.com/en/customers/khiemni/vendor
What’s HammerTradingSystem?
HammerTradingSystem detects Hammer and Hanging Man candlestick patterns in your MetaTrader 5 charts routinely. The indicator checks each accomplished bar, evaluates it towards six structural gates, scores surviving patterns with a weighted high quality system, and shows solely the setups that clear your minimal high quality threshold. Entry ranges, cease losses, and take revenue targets are drawn straight on the chart so you may concentrate on the commerce determination moderately than the calculation.
What Are Hammer and Hanging Man Patterns?
The Hammer and Hanging Man share the identical single-candle form: a small physique sitting close to the highest of the candle vary, an extended decrease shadow extending properly beneath the physique, and little to no higher shadow. The distinction between them is context — the place in a pattern this form seems determines which sign it sends.
Bullish Hammer (Reversal Sign)
Seems after a downtrend. Sellers push worth sharply decrease in the course of the session, however consumers step in and drive the shut again up close to the open, leaving an extended decrease shadow as proof of rejected promoting strain. When this form types after a minimum of two declining bars, the indicator classifies it as a Hammer — a possible bullish reversal sign. The longer the decrease shadow relative to the candle vary, the stronger the client dedication implied by the sample.
Bearish Hanging Man (Warning Sign)
The identical form showing after an uptrend tells a unique story. Value has been rising, and the lengthy decrease shadow reveals that sellers tried to push worth down in the course of the session — consumers recovered by the shut, however the try itself is a warning. Bulkowski’s analysis locations the Hanging Man at rank 87 out of 103 patterns with a 59% continuation price, which means it extra typically continues the uptrend than reverses it. HammerTradingSystem treats it as a bearish warning moderately than a confirmed reversal, getting into by way of Promote Cease solely after worth breaks beneath the sample low.
Development Context Detection
The indicator examines the three bars instantly earlier than every candidate candle. If a minimum of two of these three bars are declining (decrease closes), the sample is assessed as a Hammer. If a minimum of two of the three are rising (increased closes), it turns into a Hanging Man. When the context is ambiguous — neither pattern reaching the two-bar threshold — the indicator defaults to Hammer classification, reflecting the sample’s extra widespread bullish utility.
How the Indicator Finds Patterns
The indicator evaluates every accomplished bar towards six sequential gates. All six should move for a sign to be generated.
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Decrease shadow gate: The decrease shadow should occupy a minimum of the minimal required fraction of the overall candle vary (Normal: 35%, Strict: 45%). This confirms that significant promoting strain was rejected in the course of the session.
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Physique place gate: The midpoint of the physique should sit at or above the minimal place threshold inside the candle vary (Normal: 50%, Strict: 60%). A physique clustered close to the top quality is the defining attribute of the Hammer form.
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Higher shadow gate: The higher shadow should stay beneath the utmost allowed ratio of complete vary (Normal: 15%, Strict: 10%). A big higher shadow would point out purchaser rejection from above, which conflicts with the bullish reversal story.
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Vary significance gate: The whole candle vary should equal or exceed the minimal a number of of ATR (Normal: 0.40×, Strict: 0.50×). This rejects tiny candles that type throughout low-volatility consolidation and carry little structural which means.
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Shadow-to-body ratio gate: The decrease shadow have to be a minimum of twice the physique peak (Nison criterion). This ensures the lengthy decrease shadow shouldn’t be merely a outcome of a giant physique moderately than real rejection.
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Doji exclusion gate: The physique have to be a minimum of 0.02× ATR. A near-zero physique would make this a Dragonfly Doji moderately than a Hammer — the 2 patterns are structurally associated however analytically distinct.
Solely candles passing all six gates proceed to high quality scoring and sign registration.
High quality Rating — Evaluating Sample Power
Each sample that clears detection receives a high quality rating between 0.00 and 1.00. Six elements contribute to this rating, every weighted by its significance to the sample’s structural integrity.
High quality Elements
| Issue | Weight | What It Measures | Ultimate Vary |
|---|---|---|---|
| QF-1: Decrease Shadow Ratio | 0.35 | Proportion of candle vary occupied by decrease shadow | (0.55, 0.90) |
| QF-2: Physique Place | 0.25 | How excessive the physique midpoint sits inside the vary | (0.60, 1.00) |
| QF-3: Higher Shadow (inverted) | 0.15 | Absence of higher shadow — decrease is best | (0.60, 1.00) |
| QF-4: Vary/ATR | 0.10 | Candle measurement relative to latest volatility | (0.50, 2.00) |
| QF-5: Shut vs Prior Vary (inverted) | 0.10 | Shut place inside earlier candle’s vary | (0.60, 1.00) |
| QF-6: Relative Vary | 0.05 | This candle’s vary in comparison with earlier candle | (0.80, 2.50) |
QF-3 and QF-5 are inverted elements: for QF-3, a smaller higher shadow produces the next rating; for QF-5, an in depth within the decrease portion of the earlier candle’s vary (indicating downtrend context) produces the next rating.
Rating Grades
- Grade A (0.80 – 1.00) — Glorious: Robust structural alignment throughout all six elements
- Grade B (0.60 – 0.79) — Good: Dependable setups with most elements scoring properly
- Grade C (0.40 – 0.59) — Common: Legitimate construction however weaker issue scores; use with extra affirmation
- Grade D (0.20 – 0.39) — Under Common: Marginal setup; increased false sign danger
- Grade F (0.00 – 0.19) — Poor: Keep away from buying and selling these indicators
High quality Threshold
The default minimal high quality is 0.30. You’ll be able to elevate this to filter for higher-conviction setups:
- 0.50 – 0.60: Exhibits solely the clearest patterns with robust shadow proportions and physique positioning — fewer indicators, increased per-signal high quality
- 0.20 – 0.30: Exhibits extra indicators together with weaker structural examples — helpful for learning the sample or buying and selling extremely liquid markets
- Tip: Run the indicator on the default 0.30 in your most well-liked image and timeframe for a couple of weeks earlier than adjusting the brink
What You See on the Chart
When a Hammer or Hanging Man sample is detected and passes all filters, the indicator attracts the next components:
Sign Markers
- Arrow icons: Blue upward arrows mark Hammer (bullish) patterns; orange downward arrows mark Hanging Man (bearish) patterns. Grey arrows point out indicators blocked by an lively filter such because the Reverse Sign filter.
- High quality labels: A numeric rating (e.g., “0.68”) seems close to every sign, displaying how the sample ranked throughout all six high quality elements
Buying and selling Traces
- Entry line: An orange horizontal line on the pending order stage — Purchase Cease above the sample excessive (+ 0.05×ATR) for Hammers, or Promote Cease beneath the sample low (- 0.05×ATR) for Hanging Males
- Cease Loss line: A crimson horizontal line labeled “SL” — positioned beneath the sample low (- 0.25×ATR) for Hammers, or above the sample excessive (+ 0.25×ATR) for Hanging Males
- Take Revenue traces: As much as 4 inexperienced horizontal traces labeled TP1 by means of TP4, spaced at configurable R:R multiples from the entry stage
Visible Zones
- Sample spotlight: A shaded rectangle spans the hammer candle, making it simple to determine which bar triggered the sign. The danger zone between entry and SL is shaded in crimson; reward zones between entry and every TP stage are shaded progressively lighter.
- Monitoring dots: Small coloured dots above or beneath the sign candle replace because the sign state adjustments — white for pending, yellow for lively, inexperienced for goal hit, crimson for cease hit
Sign Lifecycle
- Pending: Sample detected, pending order not but triggered
- Triggered: Entry worth reached, commerce is lively
- Goal Hit: Value reached a take revenue stage
- Cease Hit: Value reached the cease loss
- Cancelled: Sign invalidated earlier than entry (reversed route or bar closed towards)
Settings You Can Regulate
Detection Parameters
| Setting | What It Does | Default | When to Change |
|---|---|---|---|
| ATR Interval for volatility | Bars used to calculate ATR, which normalizes all range-based thresholds to present volatility | 14 | Enhance to twenty+ for smoother measurement on noisy markets |
| Max Bars to Scan (historical past depth) | Historic bars scanned on first load to show previous patterns | 3000 | Enhance for extra historical past on increased timeframes |
| Min Bars Between Patterns | Minimal hole between two consecutive indicators, stopping overlapping setups on the identical transfer | 5 | Enhance to 7-10 if indicators cluster; lower to three for extra frequent indicators |
| Detection Preset | Switches between Normal (relaxed thresholds), Strict (tighter thresholds), and Customized (user-defined) | PRESET_STANDARD | Use Strict for higher-conviction setups; Customized to tune particular person parameters |
| High quality Rating Filter (sample energy) | Allows the standard filter — solely patterns at or above InpMinQuality seem | true | Maintain enabled for reside buying and selling; disable just for analysis |
| Min High quality (0.0-1.0, 0.30=relaxed) | Minimal high quality rating a sample should obtain to show | 0.30 | Increase to 0.50+ for fewer however stronger indicators |
Detection Preset Values
| Parameter | STANDARD | STRICT |
|---|---|---|
| Min Decrease Shadow Ratio | 0.35 | 0.45 |
| Min Physique Place | 0.50 | 0.60 |
| Max Higher Shadow Ratio | 0.15 | 0.10 |
| Min Vary/ATR | 0.40 | 0.50 |
Customized Threshold Parameters
| Setting | What It Does | Default | When to Change |
|---|---|---|---|
| (Customized) Min Decrease Shadow Ratio (Std=0.35, Strict=0.45) | Minimal decrease shadow as a fraction of complete vary | 0.35 | Enhance to 0.50+ for extra pronounced shadows; lower for extra indicators |
| (Customized) Min Physique Place (Std=0.50, Strict=0.60) | Minimal physique midpoint place inside vary | 0.50 | Enhance to 0.65 for our bodies firmly on the prime of vary |
| (Customized) Max Higher Shadow Ratio (Std=0.15, Strict=0.10) | Most higher shadow as a fraction of complete vary | 0.15 | Lower to 0.08 for near-perfect hammer form |
| (Customized) Min Vary/ATR (Std=0.40, Strict=0.50) | Minimal candle vary as a a number of of ATR | 0.40 | Enhance to 0.60+ to require bigger, extra vital candles |
| Entry Buffer (xATR for pending order) | Extra buffer added to entry stage past the sample excessive or low | 0.05 | Enhance to 0.10 on unstable markets to scale back false triggers |
| SL Buffer (xATR beneath sample Low) | Buffer beneath the sample low (Hammer) or above sample excessive (Hanging Man) | 0.25 | Enhance to 0.35 on unstable devices to scale back stop-outs |
Settings Suggestions
- Start with default settings and observe a number of dozen indicators in your chosen image and timeframe earlier than making changes
- If the Normal preset produces too many indicators, change to Strict or elevate Min High quality to 0.50
- If Strict produces too few indicators, return to Normal and think about elevating the standard threshold as an alternative of loosening the detection gates
- On low-volatility devices, the Min Vary/ATR gate at 0.40 could also be ample; on high-volatility devices like XAUUSD, think about elevating it to 0.50 so small insignificant candles are excluded
- The SL Buffer of 0.25×ATR is wider than some comparable patterns as a result of Hammer lows often get retested earlier than the reversal takes maintain — keep away from chopping this too tight
Finest Timeframes and Markets
Really useful Timeframes
- M15 — High quality: Medium | Frequency: Excessive | Finest for: Scalpers who need intraday Hammer indicators at session open and shut durations
- H1 — High quality: Excessive | Frequency: Medium | Finest for: Day merchants in search of clear reversal setups at intraday help and resistance ranges
- H4 — High quality: Excessive | Frequency: Decrease | Finest for: Swing merchants who need well-formed Hammer patterns with increased follow-through potential
- D1 — High quality: Highest | Frequency: Low | Finest for: Place merchants in search of textbook Hammer indicators at main every day help ranges
Finest Markets
- XAUUSD (Gold): Hammer patterns at help ranges on H1 and H4 incessantly mark intraday reversal factors, notably throughout London and New York session overlaps
- Main foreign exchange pairs (EURUSD, GBPUSD, USDJPY): Strong Hammer indicators type on H1 and H4, particularly close to spherical numbers, every day pivots, and prior session highs/lows
- Indices (US30, NAS100): Each Hammer and Hanging Man formations seem at structural turning factors on H1 and H4; Hanging Man indicators at prior resistance highs could be notably informative
- Oil (USOIL): Hammer patterns type at help ranges after sharp selloffs — finest noticed on H1 and H4
The indicator works on any image and timeframe. The mixtures listed above have a tendency to provide patterns with stronger structural high quality scores.
Getting Began — Fast Setup
- Open MetaTrader 5 and cargo a chart (XAUUSD on H1 or H4 is an effective start line)
- Within the Navigator panel (Ctrl+N), increase Indicators → Customized and find HammerTradingSystem
- Drag the indicator onto the chart
- Within the settings dialog, choose your Detection Preset (Normal advisable for first use) and click on OK — the indicator will scan historical past and show detected patterns instantly
- Observe the indicators that seem: blue upward arrows point out Hammer (bullish) indicators; orange downward arrows point out Hanging Man (bearish) indicators
- Examine the standard rating label on every sign to gauge structural energy — concentrate on patterns scoring 0.50 or increased when beginning out
- Elective: Allow alerts within the ALERTS part to obtain popup or push notifications for brand new patterns as they type in real-time
All Options at a Look
- Computerized Hammer (bullish) and Hanging Man (bearish) single-candle sample detection on any image and timeframe
- 6-gate structural detection: decrease shadow ratio, physique place, higher shadow restrict, vary/ATR, shadow-to-body ratio, Doji exclusion
- 6-factor weighted high quality scoring (decrease shadow 0.35, physique place 0.25, higher shadow inverted 0.15, vary/ATR 0.10, shut vs prior vary inverted 0.10, relative vary 0.05)
- Development context detection utilizing 3-bar prior worth motion: downCount >= 2 → Hammer, upCount >= 2 → Hanging Man
- 3 detection presets: Normal, Strict, Customized (user-defined thresholds)
- Sign states and lifecycle monitoring (Pending → Energetic → Completed)
- High quality filter to suppress weak patterns beneath threshold
- Excessive zone filter (overbought/oversold rejection)
- Stoploss hunt filter (liquidity sweep validation)
- Reverse sign filter (stop conflicting indicators)
- Danger/Reward with 3 cease loss strategies (Donchian Channel, ATR, Sample)
- As much as 4 take revenue ranges (TP1-TP4) at configurable R:R ratios
- Donchian Channel trailing cease loss
- MTF Scanner (as much as 150 symbols × 8 timeframes)
- Market construction evaluation (BOS / CHOCH)
- 4-channel alert system (popup, sound, push, electronic mail)
- Sign statistics dashboard
- Skilled chart themes (Darkish, Gentle, Customized)
- EA sign buffers for automated buying and selling
For detailed guides on every characteristic, see the MANUAL included with the indicator.
Frequent Questions
Q: What’s the distinction between a Hammer and a Hanging Man?
Each patterns have the identical candle form — small physique close to the top quality with an extended decrease shadow. The excellence is context: a Hammer types after a downtrend (bullish reversal sign) and a Hanging Man types after an uptrend (bearish warning). HammerTradingSystem determines which kind it’s by checking whether or not the three bars earlier than the sample present a minimum of 2 declining or 2 rising closes.
Q: Why is the Hanging Man described as a “warning” moderately than a confirmed reversal?
Thomas Bulkowski’s analysis locations the Hanging Man at rank 87 out of 103 candlestick patterns, with worth persevering with the prior uptrend 59% of the time after the sample types. This implies a Hanging Man is extra more likely to be a short lived pause within the uptrend than a confirmed prime. The indicator generates a Promote Cease entry beneath the sample low — if worth by no means breaks that low, the sign expires with out triggering, which naturally filters many false tops.
Q: What’s the distinction between Normal and Strict presets?
Normal makes use of relaxed thresholds (decrease shadow >= 35% of vary, physique place >= 50%, higher shadow <= 15%, vary >= 0.40×ATR) and passes the next proportion of candidate candles. Strict tightens all 4 thresholds (45%, 60%, 10%, 0.50×ATR respectively) and accepts solely probably the most clearly-formed patterns. Begin with Normal and change to Strict for those who choose fewer however extra textbook-quality indicators.
Q: Why does the SL buffer default to 0.25×ATR moderately than a smaller worth?
Hammer lows are frequent targets for cease hunts — worth briefly drops beneath the sample low earlier than reversing upward. A buffer of 0.25×ATR supplies sufficient clearance to soak up these temporary excursions with out being so vast that it materially adjustments the chance profile. On markets the place cease hunts are widespread (XAUUSD, main indices), it’s possible you’ll think about rising this to 0.30×ATR.
Q: What if the context is ambiguous — neither a transparent uptrend nor downtrend?
If fewer than 2 of the three prior bars are declining and fewer than 2 are rising, the indicator classifies the sample as a Hammer (bullish) by default. This displays the Hammer’s extra widespread utility within the literature and the truth that bullish reversals on ambiguous context carry the next continuation danger — at all times mix with your personal market construction evaluation in these circumstances.
Q: How do I cut back the variety of false indicators?
Increase the Min High quality threshold to 0.50 or increased to see solely stronger patterns. You too can change to the Strict Detection Preset, allow the Course Filter to limit indicators to the dominant pattern route, or allow the Excessive Zone Filter to dam indicators close to overbought/oversold channel extremes.
What’s New — Model 1.00
That is the 1.00 launch of HammerTradingSystem. Key options embody:
- Hammer and Hanging Man detection utilizing 6-gate structural validation with Nison shadow-to-body criterion
- 6-factor weighted high quality scoring utilizing decrease shadow dominance, physique positioning, higher shadow absence, vary significance, prior vary context, and relative candle measurement
- Development context detection from 3-bar prior worth motion to differentiate Hammers from Hanging Males
- Normal and Strict presets, plus absolutely customizable Customized threshold mode
- 7-layer filter chain (High quality, Excessive Zone, Course, Stoploss Hunt, Sign Zone, Market Construction, Reverse Sign)
- Multi-timeframe scanner protecting as much as 150 symbols and eight timeframes concurrently
- Automated Entry/SL/TP ranges with Donchian Channel trailing cease
- 4-channel alert system (popup, sound, push notification, electronic mail)
- EA sign buffers enabling automated buying and selling methods to devour Hammer indicators by way of iCustom()
- Skilled chart themes (Darkish, Gentle, Customized) for prolonged buying and selling classes
Getting Assist
In case you have questions or want help:
I am dedicated to serving to you get probably the most out of this indicator.
Able to Begin?
HammerTradingSystem is constructed to determine Hammer and Hanging Man patterns routinely, so you may consider evaluating the commerce moderately than trying to find the setup. Connect the indicator to your chart, begin with the default settings, and observe how the indicators line up with your personal market construction evaluation.
Joyful buying and selling!
Ich Khiem Nguyen
HammerTradingSystem 1.00 — Created 2026-02-24