| 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 parts displayed on the chart | ||
| Consumer Information: Buying and selling Strains & Sign Monitoring System | The system mechanically attracts Entry, Cease Loss, and Take Revenue strains (TP 1–4) on the chart, tracks value motion for hits, information Win/Loss outcomes, and shows real-time efficiency statistics. | |||
| Consumer Information : Visualization, Zone Fill, Sign Dashboard & Cancelled Indicators | While you connect an indicator to a chart, the system renders the next visible parts for every detected sign | |||
| Consumer Information: MTF SCAN & Dashboard Consumer Information | MTF SCAN mechanically scans all Market Watch symbols throughout 8 timeframes (M1 to W1) and shows outcomes on a Dashboard grid immediately in your chart. | |||
| Consumer Information : Chart Theme Consumer Information | Chart Theme is a characteristic that adjustments the complete chart shade scheme in MetaTrader 5 — together with the background, candles, grid, textual content, and Bid/Ask strains — with a single click on. | |||
| 4 | CORE CONCEPTS | Elementary ideas that the system is constructed upon | ||
| Consumer Information: Market Construction Performance within the Buying and selling System | Identifies development course (Uptrend, Downtrend, Ranging) by analyzing swing highs/lows, and detects key occasions: BOS (development continuation) and CHoCH (potential development 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 value course and gives steered entry, cease loss, and take revenue ranges. | |||
| 5 | SIGNAL FILTERS | Filters that refine and validate buying and selling indicators | ||
| Consumer Information: Commerce Route (Route Filter) within the Buying and selling System | Defines the allowed buying and selling course (Purchase solely, Promote solely, each, or neither) as the primary filter earlier than trying to find entry indicators, primarily based on present market development. | |||
| Consumer Information: Sign Zone Filter within the Buying and selling System | Eliminates indicators not close to necessary value zones, retaining solely these linked 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 value “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 coming into trades when value is on the prime or backside of a Donchian value channel. | |||
| Consumer Information: Reverse Sign Filter | The Reverse Sign Filter is an computerized characteristic that forestalls new indicators from showing when you have already got an energetic commerce operating in the wrong way.The precept may be very easy: Do not buy whenever you’re promoting. Do not promote whenever you’re shopping for. | |||
| Consumer Information : High quality Filter Consumer Information | High quality Filter is a characteristic that helps you obtain solely the perfect indicators — value patterns fashioned clearly, with balanced proportions and excessive reliability — and reject weak indicators, uninteresting patterns, and people under customary. | |||
| 6 | TRADE MANAGEMENT | |||
| Consumer Information : Threat/Reward & SL Methodology Consumer Information | Threat/Reward (R:R) is the ratio between the sum of money you settle for dropping (Threat) and the sum of money you count on 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 without end — even when value has risen to 2030.00.Trailing Cease Loss (TSL) is completely different. It mechanically strikes in your favor when value advances. As value strikes up, TSL strikes up with it. When value stalls or reverses, TSL holds the perfect 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
PiercingLineTradingSystem 1.00
2-Bar Bullish Reversal Sample with Penetration-Depth Evaluation
Writer: Ich Khiem Nguyen | MQL5: https://www.mql5.com/en/customers/khiemni/vendor
What’s PiercingLineTradingSystem?
PiercingLineTradingSystem detects Piercing Line candlestick patterns in your MetaTrader 5 charts mechanically. The indicator evaluates every accomplished bar pair towards six structural gates, scores surviving patterns throughout six weighted high quality components, and enters instantly on the shut of the sign candle when a legitimate Piercing Line is confirmed. Entry value, cease loss, and take revenue ranges are drawn immediately on the chart so you’ll be able to assess the commerce moderately than carry out the calculations manually.
What Is a Piercing Line Sample?
A Piercing Line is a two-candle bullish reversal formation that seems after a downtrend. The primary candle is a Lengthy Black (bearish) candle that establishes a baseline. The second candle opens under the shut of the primary candle (a dislocation hole), then closes above the 50% midpoint of the primary candle’s physique however stays under the primary candle’s open, finishing the reversal sign.
The Piercing Line indicators renewed shopping for momentum after a promoting section. Relatively than instantly closing above the primary candle (which might create an Engulfing sample), the second candle’s partial penetration into the primary candle’s physique represents a measured restoration — patrons are stepping in however haven’t but overcome all sellers. This construction is extra widespread than full Engulfing and sometimes precedes continuation of the upward transfer.
Bulkowski’s analysis ranks the Piercing Line at 13 out of 103 candlestick patterns with a 64% reversal fee. The Piercing Line is the bullish counterpart of the Darkish Cloud Cowl (bearish) sample.
Bullish Piercing Line
Seems after a downtrend. Bar 1 is a Lengthy Black candle (giant bearish physique). Bar 2 opens under close1 (dislocation), then closes above the 50% midpoint of bar 1’s physique, confirming that patrons have absorbed the promoting and begun pushing value larger. When this construction varieties after not less than two declining bars, the indicator classifies it as a Piercing Line.
Downtrend Context Detection
The indicator examines the three bars instantly earlier than bar 1 of the potential sample. If not less than two of these bars are declining (decrease closes), the sample is assessed as a Piercing Line. If the context is ambiguous — fewer than two declining bars — the indicator defaults to detecting primarily based on whether or not the primary candle is bearish sufficient (Lengthy Black physique). The Bulkowski statistics (64% reversal fee) are primarily based on downtrend context.
How the Indicator Finds Patterns
The indicator evaluates every potential two-bar sample towards six sequential gates. All six should go for a sign to be generated.
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Bar 1 Route gate: Bar 1 have to be bearish (shut < open). This establishes the downtrend setup.
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Bar 1 Lengthy Black gate: Bar 1’s physique should characterize not less than the minimal required physique/ATR a number of (Commonplace: 0.25×, Strict: 0.50×). This confirms that bar 1 is a big bearish candle, not a small doji.
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Bar 1 Physique Ratio gate: Bar 1’s physique should characterize not less than the minimal required fraction of complete vary (Commonplace: 50%, Strict: 65%). This confirms that the bearish transfer dominated the candle construction.
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Bar 2 Dislocation gate: Bar 2’s open should fall under bar 1’s shut by not less than the minimal dislocation quantity (Commonplace: 0.02× ATR, Strict: 0.05× ATR). This hole down opening indicators a continuation of promoting earlier than patrons step in.
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Bar 2 Penetration gate: Bar 2’s shut should exceed the 50% midpoint of bar 1’s physique (penetration > 0.50). This confirms that patrons have pushed again into bar 1’s vary, establishing the reversal construction.
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Bar 2 NOT Engulfing gate: Bar 2’s shut should stay under bar 1’s open (close2 < open1). If close2 >= open1, the sample is a Bullish Engulfing (a special sample with larger conviction) moderately than a Piercing Line.
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 components contribute to this rating, every weighted by its contribution to the Piercing Line’s reversal reliability.
High quality Elements
| Issue | Weight | What It Measures | Route |
|---|---|---|---|
| QF-1: Penetration Depth | 0.35 | How deep bar 2 penetrates into bar 1’s physique — deeper is best | Best (0.50, 0.95) |
| QF-2: Physique/ATR | 0.25 | Bar 1’s physique measurement relative to latest volatility — bigger is best | Best (0.60, 2.50) |
| QF-3: Dislocation ATR | 0.20 | Dimension of the hole down opening (open2 – close1) / ATR | Best (0.05, 0.40) |
| QF-4: Bar 1 Physique Ratio | 0.10 | Proportion of bar 1’s vary occupied by its physique | Best (0.70, 1.00) |
| QF-5: Relative Physique | 0.05 | Bar 2’s physique in comparison with bar 1’s physique | Best (0.70, 1.30) |
| QF-6: Route Modified | 0.05 | Affirmation that bar 2 reversed the course — at all times 1.0 for legitimate PRL | (0.90, 1.00) |
QF-1 (Penetration Depth) carries the very best weight (0.35) as a result of the depth to which bar 2 penetrates bar 1’s physique is the core structural requirement of the Piercing Line — deeper penetration signifies stronger purchaser confidence and dedication.
Rating Grades
- Grade A (0.80 – 1.00) — Glorious: Bar 2 closes close to or above bar 1’s midpoint with giant dislocation hole and substantial bar 1 physique
- Grade B (0.60 – 0.79) — Good: Dependable setups with stable penetration and significant physique metrics
- Grade C (0.40 – 0.59) — Common: Legitimate construction however penetration is average; use with further affirmation
- Grade D (0.20 – 0.39) — Beneath Common: Marginal setup; larger 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. Adjusting this threshold adjustments which patterns seem on the chart:
- 0.50 – 0.65: Reveals solely probably the most structurally sound Piercing Strains with sturdy penetration depth and enormous dislocation gaps — fewer indicators with larger per-signal high quality
- 0.20 – 0.30: Reveals extra indicators together with weaker penetration examples — helpful for analysis or learning the sample throughout completely different market circumstances
- Tip: Begin with the default 0.30 in your chosen image and timeframe and observe a number of dozen indicators earlier than adjusting
Entry Mode: Speedy
Piercing Line patterns use speedy entry on the shut of bar 2 (the sign candle) moderately than pending cease orders. When a legitimate Piercing Line is confirmed on bar shut, the system enters the commerce at that second moderately than ready for a breakout above bar 1’s open.
This displays the character of the sample: bar 2’s shut above the 50% midpoint is the sign occasion. Ready for a breakout would delay entry past the affirmation level. Speedy entry captures the transfer as outlined by the sample’s construction.
Buying and selling Ranges
Bullish Piercing Line:
- Entry = shut of bar 2 (the sign candle)
- Cease Loss = sample low − 0.25×ATR
The sample low is the minimal of bar 1’s low and bar 2’s low. The cease loss buffer of 0.25×ATR is positioned past this excessive. A break under the sample low invalidates the reversal premise.
Take revenue ranges are calculated from entry utilizing configurable risk-reward multiples (default: 1R, 2R, 3R, 5R from entry to cease distance).
What You See on the Chart
When a Piercing Line sample passes all detection gates and high quality filters, the indicator attracts the next:
Sign Markers
- Arrow icons: Inexperienced upward arrows mark Piercing Line patterns. Grey arrows point out indicators blocked by an energetic filter such because the Reverse Sign filter.
- High quality labels: A numeric rating (e.g., “0.72”) seems close to every sign, displaying how the sample ranked throughout all six high quality components.
Buying and selling Strains
- Entry line: An orange horizontal line on the speedy entry degree — the shut of bar 2
- Cease Loss line: A crimson horizontal line labeled “SL” — positioned under the sample low with an ATR buffer
- Take Revenue strains: As much as 4 inexperienced horizontal strains labeled TP1 by TP4, spaced at configurable R:R multiples from the entry degree
Visible Zones
- Sample spotlight: A shaded rectangle spans each bars of the Piercing Line, making it straightforward to determine which pair triggered the sign. The chance zone between entry and SL is shaded in crimson; reward zones between entry and every TP degree are shaded progressively lighter.
- Monitoring dots: Small coloured dots replace because the sign state adjustments — white for pending (speedy entry, monitoring), yellow for energetic, inexperienced for goal hit, crimson for cease hit.
Sign Lifecycle
- Energetic: Speedy entry positioned at bar 2 shut — commerce is reside
- Goal Hit: Worth reached a take revenue degree
- Cease Hit: Worth reached the cease loss
- Cancelled: Sign invalidated earlier than shut
Settings You Can Regulate
Detection Parameters
| Setting | What It Does | Default | When to Change |
|---|---|---|---|
| ATR Interval for volatility | Bars used to calculate ATR, normalizing all range-based thresholds to present volatility | 14 | Improve to twenty+ for smoother ATR on noisy markets |
| Max Bars to Scan (historical past depth) | Historic bars scanned on first load to show previous patterns | 3000 | Improve for extra historical past on larger timeframes |
| Min Bars Between Patterns | Minimal hole between two consecutive indicators | 5 | Improve to 7-10 if indicators cluster; lower to three for extra |
| Detection Preset | Switches between Commonplace, Strict, and Customized modes | PRESET_STANDARD | Use Strict for higher-conviction setups |
| High quality Rating Filter | Allows the standard filter | true | Preserve enabled for reside buying and selling |
| Min High quality (0.0-1.0) | 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 Physique/ATR (Bar 1) | 0.25 | 0.50 |
| Min Physique Ratio (Bar 1) | 0.50 (50%) | 0.65 (65%) |
| Min Dislocation ATR | 0.02 | 0.05 |
| Require Pattern Bars | 2 | 3 |
Customized Threshold Parameters
| Setting | What It Does | Default | When to Change |
|---|---|---|---|
| (Customized) Min Physique/ATR (Bar 1) | Minimal bar 1 physique measurement as a a number of of ATR | 0.25 | Improve to 0.40+ to require bigger first candles |
| (Customized) Min Physique Ratio (Bar 1) | Minimal bar 1 physique as a fraction of complete vary | 0.50 | Improve to 0.60 for extra dominant bearish our bodies |
| (Customized) Min Dislocation ATR | Minimal gap-down opening (open2 – close1) / ATR | 0.02 | Improve to 0.03 to require bigger dislocations |
| (Customized) Require Pattern Bars | Minimal prior declining bars to substantiate downtrend context | 2 | Improve to three for stricter downtrend affirmation |
| SL Buffer (xATR past sample excessive) | Offset positioned past the sample low | 0.25 | Improve to 0.35 on risky devices |
| Pattern SMA Interval | Interval for trend-related calculations if used | 20 | Improve to 30 for longer-term development context |
Settings Suggestions
- Start with the Commonplace preset and default high quality threshold in your chosen image; observe not less than two to a few weeks of indicators earlier than adjusting
- If Commonplace produces too many indicators on XAUUSD H1, increase Min High quality to 0.50 moderately than switching to Strict — this preserves detection sensitivity whereas filtering out weaker structural examples
- The dislocation gate (0.02× ATR Commonplace) permits small gaps; on risky devices, improve to 0.03 for extra pronounced reversals
- Keep away from slicing the SL buffer under 0.20×ATR — the sample low is the logical invalidation level for the reversal, and a few retesting of that degree is regular earlier than the transfer develops
Greatest Timeframes and Markets
Beneficial Timeframes
- H1 — High quality: Excessive | Frequency: Medium | Greatest for: Day merchants looking for clear reversal setups at intraday assist and resistance ranges; really useful place to begin
- H4 — High quality: Excessive | Frequency: Decrease | Greatest for: Swing merchants who need well-formed Piercing Line patterns with sturdy follow-through potential
- M15 — High quality: Medium | Frequency: Excessive | Greatest for: Scalpers wanting frequent Piercing Line indicators throughout energetic session hours
- D1 — High quality: Highest | Frequency: Low | Greatest for: Place merchants looking for textbook Piercing Line formations at main day by day construction ranges
Greatest Markets
- XAUUSD (Gold): Piercing Line patterns on H1 and H4 often mark vital intraday reversal factors, notably throughout London and New York session crossovers
- Main foreign exchange pairs (EURUSD, GBPUSD, USDJPY): Piercing Line formations are widespread at key intraday ranges, particularly close to spherical numbers and session open costs
- Indices (US30, NAS100): Piercing Line patterns close to prior lows can mark intraday turning factors after sharp sell-offs
- Oil (USOIL): Sturdy Piercing Line formations seem after sharp downward strikes on H1 and H4
The indicator works on any image and timeframe. H1 with the Commonplace preset on XAUUSD is the really useful beginning configuration.
Getting Began — Fast Setup
- Open MetaTrader 5 and cargo a chart (XAUUSD on H1 is an effective place to begin)
- Within the Navigator panel (Ctrl+N), increase Indicators → Customized and find PiercingLineTradingSystem
- Drag the indicator onto the chart
- Within the settings dialog, choose Detection Preset (Commonplace really useful for first use) and click on OK — the indicator will scan historical past and show detected patterns instantly
- Observe the indicators: inexperienced upward arrows point out Piercing Line patterns
- Test the standard rating on every sign — give attention to patterns scoring 0.50 or larger when beginning out
- Non-obligatory: Allow alerts within the ALERTS part to obtain notifications when new patterns kind in real-time
All Options at a Look
- Automated Bullish Piercing Line two-candle detection on any image and timeframe
- 6-gate structural detection: bar 1 course, bar 1 lengthy black physique/ATR, bar 1 physique ratio, bar 2 dislocation, bar 2 penetration depth (HARD RULE), bar 2 not engulfing
- 6-factor weighted high quality scoring (penetration depth 0.35, physique/ATR 0.25, dislocation ATR 0.20, physique ratio 0.10, relative physique 0.05, course modified 0.05)
- Downtrend context detection utilizing 3-bar prior value motion: downCount >= 2 → Piercing Line
- 3 detection presets: Commonplace, Strict, Customized (user-defined thresholds)
- Speedy entry at bar 2 candle shut (not pending order)
- Sign states and lifecycle monitoring
- High quality filter to suppress weak patterns under threshold
- Excessive zone filter (overbought/oversold rejection)
- Stoploss hunt filter (liquidity sweep validation)
- Reverse sign filter (forestall conflicting indicators)
- Threat/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 Piercing Line and a Bullish Engulfing?
Each patterns characteristic bar 2 closing larger than bar 2 opened. In a Piercing Line, bar 2’s shut stays under bar 1’s open (close2 < open1), leaving a part of bar 1 unengulfed — this measured restoration suggests a gradual shift from sellers to patrons. In a Bullish Engulfing, bar 2 closes above bar 1’s open, utterly closing inside bar 1’s vary — this represents full purchaser dominance and usually carries larger conviction. The Piercing Line is extra widespread and has a 64% reversal fee versus Engulfing’s usually larger fee.
Q: Why does the indicator use speedy entry as a substitute of a Purchase Cease?
The Piercing Line’s defining characteristic is that bar 2 closes above the 50% midpoint of bar 1’s physique — the reversal sign happens at bar shut, not at a breakout degree above bar 1’s open. Ready for value to interrupt above bar 1’s open would delay entry nicely after the sign occasion. Speedy entry at bar 2 shut captures the transfer as outlined by the sample’s construction and typical market conduct following the sample.
Q: Why is the penetration depth gate described as necessary?
Penetration depth (how far bar 2 closes into bar 1’s physique) is the core structural requirement of the Piercing Line. It represents the conviction of the reversal: deeper penetration signifies that patrons have confidently pushed again into the sellers’ territory, establishing real reversal momentum. Patterns with deep penetration (near or above the 75% degree of bar 1’s physique) rating considerably larger as a result of they display stronger purchaser dedication.
Q: What does “downtrend context” imply for the Piercing Line?
The indicator checks the three bars earlier than bar 1 of the potential sample. For a sample to be labeled as a Piercing Line, not less than two of these bars have to be declining (decrease closes). This ensures the sample varieties in an precise downtrend moderately than throughout a consolidation. The Bulkowski statistics (64% reversal fee) are primarily based on this downtrend context.
Q: What if each Bullish and Bearish indicators seem on the identical space?
If the Reverse Sign filter is enabled (InpOppositeFilter = true), the indicator prevents conflicting indicators from being registered concurrently. When a sign in the wrong way is already energetic, new indicators will both be blocked totally or proven as grey blocked arrows relying on the InpShowBlockedIndicator setting. For Piercing Line, this protects towards bearish patterns (Darkish Cloud Cowl) showing on the similar bar pair.
Q: How do I scale back the variety of indicators?
Increase the Min High quality threshold to 0.50 or larger. You may as well change to the Strict preset (tighter physique and dislocation thresholds), allow the Route Filter to limit indicators to the dominant development course, or allow the Excessive Zone Filter to dam indicators close to overbought extremes.
What’s New — Model 1.00
That is the preliminary launch of PiercingLineTradingSystem. Key options embrace:
- Piercing Line bullish two-candle detection utilizing 6-gate structural validation with hard-rule penetration depth enforcement
- 6-factor weighted high quality scoring with penetration depth dominance (0.35 weight) rewarding deep reversals
- Downtrend context detection from 3-bar prior value motion to tell apart Piercing Line from weak reversals
- Commonplace and Strict presets, plus absolutely customizable Customized threshold mode
- Speedy entry at bar 2 candle shut — no pending cease order required
- 7-layer filter chain (High quality, Excessive Zone, Route, 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 techniques to devour Piercing Line indicators through iCustom()
- Skilled chart themes (Darkish, Gentle, Customized) for prolonged buying and selling classes
Getting Assist
If in case you have questions or want assist:
Able to Begin?
PiercingLineTradingSystem identifies the structural second when patrons push again right into a downtrend by opening under the prior shut and shutting above the midpoint of that bearish candle. Connect the indicator to your chart, begin with the Commonplace preset on XAUUSD H1, and observe how the penetration depth aligns with the reversals you’d determine manually.
Blissful buying and selling!
Ich Khiem Nguyen
PiercingLineTradingSystem 1.00 — Created 2026-02-24