Three Methods Trading System - USER MANUAL

PART	Section	Description
1	INTRODUCTION	Product introduction, what the product helps you with
2	INSTALLATION & SETUP	System requirements, step-by-step installation guide
	Guide to Installing Free Indicators and EAs Included with the Mirage Trading System Purchase
3	INTERFACE DISPLAY	Explanation of the components displayed on the chart
	User Guide: Trading Lines & Signal Tracking System	The system automatically draws Entry, Stop Loss, and Take Profit lines (TP 1–4) on the chart, tracks price action for hits, records Win/Loss results, and displays real-time performance statistics.
	User Guide : Visualization, Zone Fill, Signal Dashboard & Cancelled Signals	When you attach an indicator to a chart, the system renders the following visual components for each detected signal
	User Guide: MTF SCAN & Dashboard User Guide	MTF SCAN automatically scans all Market Watch symbols across 8 timeframes (M1 to W1) and displays results on a Dashboard grid directly on your chart.
	User Guide : Chart Theme User Guide	Chart Theme is a feature that changes the entire chart color scheme in MetaTrader 5 — including the background, candles, grid, text, and Bid/Ask lines — with a single click.
4	CORE CONCEPTS	Fundamental concepts that the system is built upon
	User Guide: Market Structure Functionality in the Trading System	Identifies trend direction (Uptrend, Downtrend, Ranging) by analyzing swing highs/lows, and detects key events: BOS (trend continuation) and CHoCH (potential trend reversal).
	User Guide : Signal Types, States, and Lifecycle	A signal is the system's notification when it detects a qualifying candlestick pattern on the chart. Each signal tells you the expected price direction and provides suggested entry, stop loss, and take profit levels.
5	SIGNAL FILTERS	Filters that refine and validate trading signals
	User Guide: Trade Direction (Direction Filter) in the Trading System	Defines the allowed trading direction (Buy only, Sell only, both, or neither) as the first filter before searching for entry signals, based on current market trend.
	User Guide: Signal Zone Filter in the Trading System	Eliminates signals not near important price zones, retaining only those connected to market structures (swing high/low, BOS, CHoCH) to reduce noise.
	User Guide: StoplossHunt Filter User Guide — Filtering "SL Sweep" Signals	Identifies higher-probability signals by checking whether price "swept stoploss" before forming a pattern.
	User Guide : Extreme Zone Filter	Extreme Zone Filter is a signal filtering feature that helps avoid entering trades when price is at the top or bottom of a Donchian price channel.
	User Guide: Opposite Signal Filter	The Opposite Signal Filter is an automatic feature that prevents new signals from appearing when you already have an active trade running in the opposite direction.The principle is very simple: Don't buy when you're selling. Don't sell when you're buying.
	User Guide : Quality Filter User Guide	Quality Filter is a feature that helps you receive only the best signals — price patterns formed clearly, with balanced proportions and high reliability — and reject weak signals, dull patterns, and those below standard.
6	TRADE MANAGEMENT
	User Guide : Risk/Reward & SL Method User Guide	Risk/Reward (R:R) is the ratio between the amount of money you accept losing (Risk) and the amount of money you expect to gain (Reward) in a single trade.
	User Guide: Trailing Stop Loss (TSL) User Guide	Regular Stop Loss (SL) stays fixed in one place. You set SL at 1990.00, and it stays there forever — even if price has risen to 2030.00.Trailing Stop Loss (TSL) is different. It automatically moves in your favor when price advances. As price moves up, TSL moves up with it. When price stalls or reverses, TSL holds the best position it reached.
7	CONFIGURATION PARAMETERS GUIDE	Detailed guide to each configuration parameter
	SIGNAL SCANNING CONFIGURATION GUIDE - MIRAGE TRADING SYSTEM EA	Guide to mastering signal scanning settings within the Inputs tab, optimizing trade discovery on a single chart or across the entire market.
8	ALERTS & NOTIFICATIONS
	User Guide: Alerts & Notifications User Guide	Configure push notifications, and on-screen popups when new signals are detected.
7	SYSTEM RISKS & LIMITATIONS	Notes on system risks and limitations

1. INTRODUCTION

What is Three Methods Trading System?

This indicator helps you catch powerful continuation patterns in the market by automatically detecting Rising Three Methods (bullish) and Falling Three Methods (bearish) formations. It filters out weak setups and shows you only high-quality opportunities with entry points, stop losses, and profit targets already calculated. Perfect for trend traders who want to enter confirmed trends at reliable consolidation breakouts.

Three Methods Trading System helps you spot these powerful continuation patterns on your MetaTrader 5 charts — automatically. The indicator scans every candle, filters out weak setups, and shows you only the best trading opportunities with clear entry points, stop losses, and profit targets already calculated. It works on any market and any timeframe, giving you more time to focus on your trading decisions instead of searching for patterns.

What Are Three Methods Patterns?

Three Methods patterns are reliable continuation patterns that appear when market trends pause briefly before resuming their original direction. Unlike reversal patterns, these formations show a strong initial trending candle followed by a consolidation period, then a breakout continuation in the same direction. This structure makes them excellent for entries during confirmed uptrends and downtrends.

Rising Three Methods (Bullish Continuation)

Appears during an established uptrend when the market pauses to consolidate. The pattern consists of five candles where:

• First candle: A tall bullish candle showing strong upward momentum. This establishes the trend direction and size. Must have a strong body (at least 50% of its range) and be significantly larger than recent volatility.
• Middle three candles: Three small consolidation candles that stay within the range of the first candle. These candles show buyers taking a breath — not a reversal. Each middle candle must stay below the high of the first candle and above its low (containment).
• Fifth candle: A bullish breakout candle that closes above the high of the first candle. This candle confirms the consolidation is over and buyers are pushing prices higher again.

When you see this pattern in an uptrend, it signals that the trend has only paused, not reversed. Buyers have absorbed some selling pressure during the consolidation, and prices are ready to continue higher.

Falling Three Methods (Bearish Continuation)

Appears during an established downtrend when the market pauses to consolidate. The pattern consists of five candles where:

• First candle: A tall bearish candle showing strong downward momentum. This establishes the trend direction and size. Must have a strong body (at least 50% of its range) and be significantly larger than recent volatility.
• Middle three candles: Three small consolidation candles that stay within the range of the first candle. These candles show sellers taking a breath — not a reversal. Each middle candle must stay above the low of the first candle and below its high (containment).
• Fifth candle: A bearish breakout candle that closes below the low of the first candle. This candle confirms the consolidation is over and sellers are pushing prices lower again.

When you see this pattern in a downtrend, it signals that the trend has only paused, not reversed. Sellers have absorbed some buying pressure during the consolidation, and prices are ready to continue lower.

Three Methods patterns work especially well in trending markets because they mark the exact moment when consolidation ends and the primary trend resumes. Combine this with proper position management and you have a high-probability setup.

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How the Indicator Finds Patterns

The indicator scans your charts in real-time and checks each potential pattern against multiple quality requirements:

1. First Candle Strength Check: Verifies that the first candle has a strong body (at least 50% of its range) and is significant relative to recent market volatility (ATR). A weak first candle indicates insufficient trend strength.
2. Consolidation Containment Check: Confirms that all three middle candles stay completely within the range of the first candle. A breach indicates the consolidation is breaking, not forming.
3. Middle Candle Size Check: Ensures the three middle candles are small relative to the first candle body. Large middle candles indicate the consolidation is being rejected, not respected.
4. Breakout Candle Check: Validates that the fifth candle closes beyond the first candle's extreme (above the high for Rising, below the low for Falling). A weak breakout suggests hesitation.

Only patterns that pass all these checks appear on your chart, so you don't waste time on weak or invalid setups.

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Quality Score — How Good Is the Pattern?

Every pattern gets a quality score from 0% to 100%, like a grade on a test. This helps you focus on the best trading opportunities.

What the Score Means

The indicator checks five key factors to calculate the quality score:

Body Strength (25% weight): How large the first candle's body is compared to recent market volatility (ATR). Larger bodies show stronger trend establishment. Weak, small-bodied first candles reduce the score.

Containment Integrity (20% weight): How tightly all three middle candles stay within the first candle's range. Perfect containment (no breach) boosts the score. Any breach into the first candle's territory reduces it.

Breakout Conviction (25% weight): How far the fifth candle penetrates beyond the first candle's extreme. A deep breakout with a large body shows strong continuation conviction. A weak breakout with a small body reduces the score.

Middle Candle Shrinkage (15% weight): How small the middle candles are relative to the first candle body. Smaller consolidation candles show better congestion control. Large middle candles indicate the consolidation is weak.

Counter-Trend Validation (15% weight): How many of the middle candles actually move against the main trend (showing genuine consolidation pressure). More counter-trend candles indicate genuine market hesitation being absorbed.

Grade	Score Range	Quality Level
A	80-100%	Excellent — Best signals
B	60-79%	Good — Reliable setups
C	40-59%	Average — Needs confirmation
D	20-39%	Below Average — Risky
F	0-19%	Poor — Avoid

Quality Threshold Setting

By default, the indicator only shows patterns scoring 0.30 (30%) or higher. You can adjust this in the settings:

• Raise to 0.50-0.70: See only the best signals (fewer but higher quality)
• Lower to 0.20: See more signals (more frequent but mixed quality)
• Tip: Start with the default 0.30 and adjust based on your backtest results

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What You See on the Chart

When the indicator detects a Three Methods pattern, it draws everything you need to know directly on the chart:

Signal Markers

• Arrow icons: Green arrows pointing up mark Rising Three Methods (bullish) signals. Red arrows pointing down mark Falling Three Methods (bearish) signals. The arrow appears at the fifth candle of the pattern.
• Quality labels: A small percentage label appears near the arrow showing the quality score (e.g., "73%") so you can quickly assess signal strength

Trading Lines

• Entry line: A blue horizontal line shows your entry price. This is positioned slightly beyond the pattern extreme (above the first candle high for bullish signals, below the first candle low for bearish signals) with a buffer zone
• Stop Loss line: A red horizontal line shows where to place your stop loss. This is calculated based on pattern structure and volatility, with a clear "SL" label
• Take Profit lines: Two green horizontal lines show your profit targets. TP1 is the first conservative target, TP2 is the extended target for strong trends. Both are labeled clearly

Visual Zones

• Pattern highlight: A subtle shaded vertical zone highlights the five candles that form the pattern, making it easy to see the structure at a glance
• Tracking dots: Small colored dots appear during the signal lifecycle to show progress. Blue = pending entry, yellow = entry triggered, green = profit target hit, red = stop loss hit

Signal Lifecycle

Signals progress through different states, shown by changing colors and tracking dots:

1. Pending: Pattern just detected, waiting for entry confirmation. Signal shows with blue tracking dot.
2. Triggered: Entry price reached, trade is active. Tracking dot turns yellow.
3. Target Hit: Price reached take profit level. Signal turns green, tracking dot green.
4. Stop Hit: Price hit stop loss. Signal turns red, tracking dot red.
5. Cancelled: Signal invalidated before entry (pattern broke down). Signal disappears or grays out.

You can watch your signals evolve in real-time without opening any menus or panels.

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Settings You Can Adjust

Here are the main settings that control how the indicator finds and displays Three Methods patterns:

Setting	What It Does	Default	When to Change It
ATR Period	How many candles to measure average volatility	14	Use 20 for smoother results on volatile pairs
Max Bars to Scan	How far back in history to search	3000	Increase to 5000 for deeper analysis
Min Bars Between Patterns	Minimum gap between two signals	5	Increase to 10 to reduce signal frequency
Min Body Ratio (Candle 1)	How much of the first candle must be a solid body (body/range)	0.50	Raise to 0.60 for stronger trends only
Min Range/ATR (Candle 1)	Minimum first candle size relative to volatility	0.50	Lower to 0.40 on low-volatility pairs
Max Middle Body Ratio	Maximum allowed middle candle body vs first candle body	0.50	Raise to 0.60 for looser consolidation
Max Containment Breach	How far middle candles can breach first candle range (×ATR, 0=strict)	0.00	Increase to 0.10 for tighter patterns
Min Counter-Trend Candles	Minimum counter-trend candles in consolidation (0-3)	2	Raise to 3 for more genuine consolidation
Min Breakout Body Ratio	Minimum body ratio for fifth candle	0.40	Raise to 0.50 for stronger breakouts only
Entry Buffer	Distance beyond pattern for entry (× ATR)	0.05	Increase to 0.10 for wider entries on volatile markets
SL Buffer	Safety distance for stop loss (× ATR)	0.10	Increase to 0.20 in volatile markets

Settings Tips

• Start with all default settings and let the indicator run for a few days to see how it performs on your chosen market and timeframe
• If you get too many signals, raise the quality threshold to 0.50 or increase the Min Body Ratio to 0.60
• If signals are too rare, lower the quality threshold to 0.20 or reduce the Max Middle Body Ratio to 0.40
• On high-volatility pairs like XAUUSD, you might need slightly wider Entry Buffer (0.10) and SL Buffer (0.20)
• Always backtest any setting changes on historical data before using them on a live account

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Best Timeframes and Markets

Recommended Timeframes

Timeframe	Signal Quality	Signal Frequency	Best For
M15	Good	Frequent	Scalping, day trading
H1	Very Good	Moderate	Intraday trading
H4	Excellent	2-4 per month	Swing trading (recommended)
D1	Excellent	1-2 per month	Position trading
Best Markets

Best Markets

• XAUUSD (Gold): Excellent pattern clarity on H1 and H4 timeframes. Strong trend candles with clear consolidation make detection reliable.
• EURUSD, GBPUSD, USDJPY: Major forex pairs work well on all timeframes above M15. Best results on H4 where trends are more established.
• US30, NAS100: Stock indices show clear Three Methods patterns on H4 and Daily timeframes during sustained trends.
• Cryptocurrency (BTCUSD, ETHUSD): Use Daily timeframe for clearer signals. Lower timeframes are too noisy for reliable consolidation patterns.

The indicator works on any symbol and timeframe, but these combinations tend to produce the most reliable signals.

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Getting Started — Quick Setup

Follow these steps to start using Three Methods Trading System:

1. Open MetaTrader 5 and load the chart for the market you want to trade (we recommend starting with XAUUSD on H4)
2. In the Navigator panel (left side), expand "Indicators" and find "Three Methods Trading System"
3. Drag the indicator onto your chart
4. A settings window appears — for your first time, click OK to use the default settings
5. Watch for signals over the next few weeks. Green arrows = continuation opportunities (Rising Three Methods), red arrows = continuation opportunities (Falling Three Methods)
6. After observing initial signals, adjust the Quality Threshold if you're getting too many or too few signals
7. Set up alerts by opening the indicator settings again and enabling "Push Notifications" to get alerts on your phone when patterns appear

That's it! The indicator is now scanning your charts automatically and will alert you when high-quality Three Methods patterns appear.

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All Features at a Glance

Pattern-Specific Features

• ✓ Five-candle continuation detection with first candle strength, consolidation containment, and breakout validation
• ✓ Quality scoring 0-100% based on weighted factors (body strength 25%, containment 20%, breakout 25%, shrinkage 15%, counter-trend 15%)
• ✓ Automatic entry buffer zones calculated from pattern structure + ATR for optimal entry timing at breakout completion
• ✓ Dual profit targets (TP1 conservative, TP2 extended) based on pattern height and breakout strength
• ✓ Volatility-adaptive thresholds that adjust detection criteria based on recent ATR (average true range)
• ✓ Consolidation validation ensuring middle candles show genuine sideways movement, not directional weakness

The following professional-grade features are available across all our indicators:

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Common Questions

Q: Why is this a continuation pattern, not a reversal pattern?

Three Methods patterns only work when a trend is already established. They mark the moment when consolidation ends and the original trend resumes. Unlike reversal patterns that work against the trend, Three Methods patterns work WITH the trend. Always confirm the trend direction before taking a Three Methods signal.

Q: What's the best timeframe for this pattern?

H4 gives the best balance of signal quality and frequency on trending markets. You'll typically get 2-4 high-quality signals per month on major pairs, with excellent reliability for trend continuation. Start there and adjust based on your trading style. If you're a day trader, H1 works well but requires tighter quality filters (raise threshold to 60%). For position trading, Daily timeframe provides the strongest signals but you'll wait longer between opportunities.

Q: How can I get fewer signals?

Raise the quality threshold from 0.30 to 0.50-0.70 in the settings. You can also increase "Min Bars Between Patterns" from 5 to 10, which prevents signals from appearing too close together. Another option is to raise "Min Body Ratio" to 0.60 and "Max Middle Body Ratio" to 0.40 — this will only show patterns with strong trend candles and tiny consolidations. Finally, enable the "Extreme Zone Filter" to only get signals near key support/resistance areas.

Q: How can I get more signals?

Lower the quality threshold from 0.30 to 0.20 in the settings. You can also decrease "Min Bars Between Patterns" from 5 to 2, which allows signals to appear closer together. Another option is to lower "Min Body Ratio" to 0.40 and increase "Max Middle Body Ratio" to 0.60 — this will show patterns with weaker trends and looser consolidations. Finally, reduce "Max Containment Breach" to allow middle candles to slightly exceed the first candle range.

Q: How is this different from just trend continuation entries?

The indicator checks far more than just "the trend is up, so buy more." It verifies that a specific consolidation pause is actually happening (three small candles staying within the first candle range), that the consolidation is being rejected with a clean breakout (fifth candle closing beyond the first), and that the overall structure has high quality (body strength, integrity, conviction). Three random trending candles might fail all these tests. The quality score tells you exactly how well the pattern meets professional technical analysis criteria.

Q: Can I use this with other indicators?

Yes. The built-in Market Structure filter adds BOS (Break of Structure) and CHOCH (Change of Character) context to signals, helping you understand if the continuation is likely to hold. Many traders combine this indicator with trend-confirmation tools like moving averages or ATR-based channels. The EA Signal Buffers feature lets automated trading systems read the indicator's signals, so you can build expert advisors that trade these patterns automatically.

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What's New — Version v1.00

This is the v1.00 release of Three Methods Trading System. Key features include:

• Automatic Rising Three Methods and Falling Three Methods pattern detection on all timeframes
• Quality scoring from 0-100% based on body strength, containment integrity, breakout conviction, shrinkage, and counter-trend candle count
• Five filter systems (Quality, Extreme Zone, Direction, Stoploss Hunt, Signal Zone) to reduce false signals
• Multi-timeframe scanner to find patterns across 150 symbols and 8 timeframes simultaneously
• Donchian and ATR stop loss calculation methods for flexible risk management
• Trailing stop loss with automatic adjustment as price moves in your favor
• Real-time alerts: popup, sound, email, and push notifications to your mobile device
• Signal dashboard showing live statistics and pattern counts
• Full EA integration with 10 buffer outputs for automated trading systems
• Chart theme support (dark, light, custom) for comfortable viewing
• No repainting — all signals are final and locked after the fifth candle completes

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Getting Help

If you have questions or need support:

• Documentation: Check the detailed user guides linked in the Features section above
• MQL5 Profile: https://www.mql5.com/en/users/khiemni/seller
• Direct Contact: Message me through MQL5 for technical support

I'm committed to helping you get the most out of this indicator.

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Ready to Start?

Three Methods Trading System is designed to save you time and help you find high-probability continuation patterns automatically. Attach the indicator to your chart and start with the default settings — you can fine-tune everything later as you get comfortable with how it works.

Happy trading!

Ich Khiem Nguyen

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