| 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
Professional 2-Bar Reversal Detection for MT5
Author: Ich Khiem Nguyen | MQL5: https://www.mql5.com/en/users/khiemni/seller
What is Above the Stomach Trading System?
Above the Stomach Trading System helps you spot Above the Stomach / Below the Stomach 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 Stomach Patterns?
Above the Stomach / Below the Stomach are powerful 2-candle reversal patterns that appear when a second candle opens within the body of the first and closes beyond it, signaling a shift in market control.
Above the Stomach (Bullish Reversal)
The Above the Stomach pattern appears after a downtrend. The first candle is bearish — sellers are in control and push the price lower. The second (signal) candle opens at or above the midpoint of the first candle's body, then closes above the first candle's open. This shows buyers have absorbed the selling pressure and are taking control, suggesting the downtrend may be reversing upward.
Below the Stomach (Bearish Reversal)
The Below the Stomach pattern appears after an uptrend. The first candle is bullish — buyers have been pushing the price higher. The second (signal) candle opens at or below the midpoint of the first candle's body, then closes below the first candle's open. This shows sellers have overpowered the buying momentum, suggesting the uptrend may be reversing downward.
When you see these patterns forming near important support or resistance levels, they become even more reliable signals for potential trend reversals.
How the Indicator Finds Patterns
The indicator scans your charts in real-time and checks each potential pattern against multiple quality requirements:
- Structure check: Verifies the 2-candle relationship — signal candle opens within the setup candle's body and closes beyond the setup candle's open in the reversal direction.
- Body strength check: Confirms both candles have meaningful real bodies relative to recent ATR, filtering out doji-like candles that lack conviction.
- Trend context check: Ensures the pattern appears after a genuine prior trend (minimum number of directional bars), so you are catching actual reversals rather than sideways noise.
- Momentum check: Confirms the signal candle's close position relative to the prior candle's full range, measuring how decisively price moved through the setup.
Only patterns that pass all these checks appear on your chart, so you don't waste time on weak or invalid setups.
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 uses 5-Factor Weighted Scoring to grade each pattern. It evaluates how large the setup candle's body is relative to volatility (25%), how strong the signal candle's body is (20%), how decisively the signal candle closes versus the prior candle's full range (25%), the relative size of the signal body (15%), and whether the pattern appears in a clear trend context (15%). Patterns where all five factors align — strong setup, decisive signal, and clear trend — receive the highest scores.
| 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 50% or higher. You can adjust this in the settings:
- Raise to 60-70%: See only the best signals (fewer but higher quality)
- Lower to 30-40%: See more signals (more frequent but mixed quality)
- Tip: Start with the default 50% and adjust based on your backtest results
What You See on the Chart
When the indicator detects a Stomach pattern, it draws everything you need to know directly on the chart:
Signal Markers
- Arrow icons: An upward arrow (green) marks a bullish Above the Stomach signal; a downward arrow (red) marks a bearish Below the Stomach signal. Arrows are placed at the close of the signal candle.
- Quality labels: A percentage label appears beside each arrow, showing the pattern's quality score (e.g., "78%"). Higher scores are shown in brighter, more prominent colors.
Trading Lines
- Entry line: A horizontal line at the signal candle's close price, color-coded by direction (blue for buy, orange for sell), labeled "Entry".
- Stop Loss line: A horizontal red line placed below the lowest point of the two-candle pattern (buy) or above the highest point (sell), with an ATR buffer added, labeled "SL".
- Take Profit lines: Up to four horizontal lines above the entry (buy) or below the entry (sell), labeled TP1 (1R), TP2 (1.5R), TP3 (2R), and TP4 (3R), shown in green.
Visual Zones
- Pattern highlight: A shaded rectangle covering the two pattern candles, colored to match signal direction, helping you quickly see the pattern boundaries on a busy chart.
- Tracking dots: Small colored dots appear on subsequent candles after the signal, showing whether the trade is still open, hit a target, or stopped out.
Signal Lifecycle
Signals progress through different states, shown by changing colors and tracking dots:
- Pending: Pattern just detected, waiting for entry confirmation
- Triggered: Entry price reached, trade is active
- Target Hit: Price reached take profit level (signal turns green)
- Stop Hit: Price hit stop loss (signal turns red)
- Cancelled: Signal invalidated before entry (signal disappears or grays out)
You can watch your signals evolve in real-time without opening any menus or panels.
Settings You Can Adjust
Here are the main settings that control how the indicator finds and displays Stomach patterns:
| Setting | What It Does | Default | When to Change It |
|---|---|---|---|
| Min Body Percent (%) | Minimum signal candle body size as a percentage of the full candle range | 0.20 (20%) | Raise to 0.30+ to require more decisive signal candles; lower if signals are too rare |
| Min Body ATR Ratio (signal) | Minimum signal candle body size relative to recent ATR | 0.40 | Raise to filter out small signal candles on volatile markets |
| Min Setup Body ATR Ratio | Minimum setup (first) candle body size relative to recent ATR | 0.50 | Raise to require a stronger first candle; useful on highly volatile pairs |
| Require Trend Bars | Minimum number of directional bars before the pattern to confirm a prior trend | 3 | Raise to 5+ for stricter trend context; lower to 2 on trending instruments |
| SL Buffer ATR Multiplier | Extra ATR distance added beyond the pattern's high/low for the stop loss | 0.10 | Raise to 0.20+ on volatile markets to avoid premature stop-outs |
| Trend Length (bars) | Number of bars used to assess overall trend direction for context scoring | 20 | Use 10 for short-term charts; use 50+ on Daily timeframe |
| Quality Threshold (%) | Minimum quality score required for a signal to appear on the chart | 50 | Raise to 65+ to see only the strongest setups; lower to 35 if signals are too infrequent |
| Take Profit Mode | Which TP levels to display (1R, 1.5R, 2R, 3R, or combinations) | 1R + 2R | Select 3R for trend-following targets; keep 1R for conservative exits |
Settings Tips
- Start with all default settings and let the indicator run for a few days to see how it performs
- If you get too many signals, raise the quality threshold or increase the minimum body ATR ratios
- If signals are too rare, lower the quality threshold or reduce the required trend bars
- Always backtest any setting changes before using them on a live account
Best Timeframes and Markets
Recommended Timeframes
| Timeframe | Signal Quality | Signal Frequency | Best For |
|---|---|---|---|
| M15 | Moderate | High | Scalpers who want frequent setups; combine with higher-TF trend filter |
| H1 | Good | Moderate | Intraday traders seeking balanced signal frequency and reliability |
| H4 | Excellent | Low-Moderate | Swing traders; recommended starting point for most instruments |
| D1 | Excellent | Low | Position traders and longer-term swing setups with clearest structure |
Best Markets
- Forex major pairs (EURUSD, GBPUSD, USDJPY): Consistent pattern clarity on H4 and D1; works on H1 during London and New York sessions.
- Gold (XAUUSD): Strong results on H4 and D1 due to clear trending behavior and well-defined candle structure.
- Stock indices (US30, NAS100, S&P500): Best on H4 and Daily; avoid lower timeframes during pre-market hours.
- Cryptocurrency (BTCUSD, ETHUSD): Use D1 for clearer signals; lower timeframes can produce noise due to 24/7 trading.
- Commodities (XAGUSD, Oil): Good pattern clarity on H4 and D1.
The indicator works on any symbol and timeframe, but these combinations tend to produce the most reliable signals.
Getting Started — Quick Setup
Follow these steps to start using Above the Stomach Trading System:
- Open MetaTrader 5 and load a chart. Start with XAUUSD or EURUSD on the H4 timeframe for a clean introduction to the pattern.
- In the Navigator panel on the left, expand the "Indicators" section and find "AboveTheStomachTradingSystem" under Custom Indicators.
- Double-click or drag the indicator onto your chart.
- A settings window will appear. Click OK to use the default settings for your first session.
- The indicator will immediately scan historical bars and plot any qualifying signals. Look for colored arrows and horizontal lines on past candles.
- Observe the signals over the next few days. Note which quality scores the patterns receive and how price reacted after each signal.
- After reviewing initial results, adjust the Quality Threshold or body ratio settings to match your preferred signal frequency and instrument.
That's it! The indicator is now scanning your charts automatically and will alert you when high-quality Stomach patterns appear.
All Features at a Glance
Pattern-Specific Features
- Detects both Above the Stomach (bullish) and Below the Stomach (bearish) variants in a single indicator pass
- 5-Factor Weighted Scoring evaluates body strength, close position, setup size, and trend context for each pattern
- Midpoint-penetration rule enforces the core structural requirement: signal candle must open within the setup body at or beyond its midpoint
- Configurable trend-bar requirement ensures patterns appear only after a qualifying directional move, not in sideways markets
- ATR-based stop loss and take profit levels (1R, 1.5R, 2R, 3R) automatically scale to current market volatility
The following professional-grade features are available across all our indicators:
| 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. |
Common Questions
Q: Why does the indicator sometimes not show a signal on a candle that looks correct to me?
The indicator enforces all structural rules simultaneously. The most common reason a visually similar candle is rejected is the body size requirement — if either candle's body is too small relative to ATR, the pattern is filtered out. Check the "Min Body ATR Ratio" settings and lower them slightly if you want to include smaller-body patterns.
Q: What is the best timeframe to start with?
H4 is the recommended starting timeframe for most traders. It provides a balance of signal frequency and pattern reliability. Once you are familiar with how the patterns look and behave, you can move to H1 for more frequent setups or D1 for higher-conviction signals.
Q: How do I reduce the number of signals appearing on my chart?
Raise the Quality Threshold setting (e.g., from 50% to 65%) to show only higher-scoring patterns. You can also increase the "Require Trend Bars" value to demand a stronger prior trend before the pattern forms. Both changes will reduce signal count while improving average setup quality.
Q: How is Above the Stomach different from Bullish Engulfing?
Both are 2-candle bullish reversal patterns, but the structural requirement differs. A Bullish Engulfing signal candle must fully cover the prior candle's entire body. Above the Stomach only requires the signal candle to open within the setup body (at or above midpoint) and close above the setup candle's open — the signal candle does not need to engulf the full prior body. This makes Above the Stomach a less aggressive but more frequently occurring reversal signal.
Q: When exactly should I enter the trade?
Entry is at the close of the signal candle (immediate entry). The indicator plots the entry line at the close of the second candle. If you miss the exact close, entering on the open of the next candle is an acceptable alternative, though it may affect your risk/reward slightly.
What's New — Version v1.00
This is the v1.00 release of Above the Stomach Trading System. Key features include:
- Automatic detection of Above the Stomach (bullish) and Below the Stomach (bearish) patterns across all timeframes
- 5-Factor Weighted Scoring with percentage grade display for every signal
- ATR-scaled stop loss placement with configurable buffer to absorb normal market noise
- Four take profit levels (1R, 1.5R, 2R, 3R) drawn automatically on the chart
- Signal lifecycle tracking with color-coded states (Pending, Triggered, Target Hit, Stop Hit, Cancelled)
- Multi-timeframe scanner showing Stomach pattern signals across up to 9 timeframes and symbols simultaneously
- Full suite of filters: Quality Filter, Extreme Zone Filter, Stoploss Hunt Filter, Opposite Signal Filter
- Push notifications, email alerts, and MT5 pop-up alerts when a new signal is detected
- Light and dark chart theme support
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.
Ready to Start?
Above the Stomach Trading System is designed to save you time and help you find high-probability Stomach 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
Above the Stomach Trading System v1.00 — Created 2026-02-22
