| 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. | |||
| 9 | SYSTEM RISKS & LIMITATIONS | Notes on system risks and limitations |
1. INTRODUCTION
4-Bar Three Line Strike — Staircase Trend + Engulfing Strike Detection
Author: Ich Khiem Nguyen | MQL5: https://www.mql5.com/en/users/khiemni/seller
What is Line Strike Trading System?
Line Strike Trading System helps you spot Three Line Strike 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 Line Strike Patterns?
Three Line Strike patterns are powerful 4-bar formations that occur when a strong trend builds momentum through three consecutive candles, only to be completely reversed by a single dramatic engulfing candle. The defining characteristic is the "staircase + strike" structure — three orderly steps followed by one overwhelming reversal.
Bullish Three Line Strike (Continuation Buy)
A Bullish Three Line Strike appears during an uptrend. The first three candles are bullish, each closing progressively higher in an ascending staircase. Then the fourth candle (the strike) opens above the third candle's close and plunges all the way below the first candle's open — completely engulfing the entire 3-candle advance. In continuation mode, this dramatic pullback creates a buying opportunity as the original uptrend is expected to resume.
Bearish Three Line Strike (Continuation Sell)
A Bearish Three Line Strike appears during a downtrend. The first three candles are bearish, each closing progressively lower in a descending staircase. Then the fourth candle (the strike) opens below the third candle's close and surges above the first candle's open — completely engulfing the entire 3-candle decline. In continuation mode, this dramatic bounce creates a selling opportunity as the original downtrend is expected to resume.
When you see these patterns forming near key support or resistance levels, they become even more reliable signals. The Trade Direction setting also lets you switch to Reversal mode if you prefer to trade in the strike candle's direction.
How the Indicator Finds Patterns
The indicator scans your charts in real-time and checks each potential pattern against multiple quality requirements:
- Verifies three consecutive candles move in the same direction with long bodies (at least 60% of their range) and sufficient volatility (range at least 0.50x ATR)
- Validates the staircase structure — each candle opens within the prior candle's body and closes progressively further in the trend direction
- Confirms the strike candle opens beyond the third candle's close and closes at or beyond the first candle's open, completely engulfing the 3-candle span
- Optionally checks trend context using a simple moving average to confirm the pattern appears during a directional move
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 evaluates four key factors to grade each Three Line Strike pattern. How consistent are the three trend candle body sizes? How strongly does the strike candle engulf the 3-candle span? How much of the strike candle's range is body versus wicks? And does the pattern appear in a meaningful trend context? Patterns with uniform staircase candles, complete engulfment, and clear trend alignment receive higher 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 30% or higher. You can adjust this in the settings:
- Raise to 50-60%: See only the best signals (fewer but higher quality)
- Lower to 15-20%: See more signals (more frequent but mixed quality)
- Tip: Start with the default 30% and adjust based on your backtest results
What You See on the Chart
When the indicator detects a Three Line Strike pattern, it draws everything you need to know directly on the chart:
Signal Markers
- Arrow icons: A green upward arrow appears below bullish patterns; a red downward arrow appears above bearish patterns
- Quality labels: The quality score percentage (e.g., "65%") is displayed next to each signal arrow
Trading Lines
- Entry line: A blue horizontal line at the strike candle close price (or with ATR buffer if configured)
- Stop Loss line: A red horizontal line below the strike candle low (bullish) or above the strike candle high (bearish), with pip distance label
- Take Profit lines: Up to 4 green lines (TP1-TP4) at configurable R:R ratios, each with pip distance and R:R labels
Visual Zones
- Pattern highlight: All 4 candles of the pattern are color-highlighted — green for bullish and red for bearish setups
- Tracking dots: Small dots trace the price path after a signal is detected, changing color as the signal progresses through its lifecycle
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 Three Line Strike patterns:
| Setting | What It Does | Default | When to Change It |
|---|---|---|---|
| ATR Period for volatility | Controls how many bars are used to measure market volatility | 14 | Rarely needs changing; lower for faster-moving markets |
| Max Bars to Scan (history depth) | How far back in history to look for patterns | 3000 | Increase to see more historical signals, decrease for faster loading |
| Min Bars Between Patterns | Minimum gap between consecutive signals | 5 | Increase if signals cluster too close together |
| Long Body Ratio (body/range, 0.60=standard) | How large each trend candle body must be relative to its range | 0.0 | Lower to accept less decisive candles, raise for stronger bodies only |
| Min Range/ATR (significance filter, 0.50=standard) | Minimum range of each trend candle relative to ATR | 0.0 | Lower for quieter markets, raise to require larger candles |
| Doji Body Pct (filter doji, 0.10=10%) | Body below this ratio is filtered as a doji | 0.0 | Lower to accept smaller bodies, raise to filter more aggressively |
| Strict Mode (gap + new H/L on strike) | Require the strike candle to gap and make new high/low | false | Enable for textbook patterns only (reduces signals significantly) |
| Stair-Step Mode | How the staircase progression is checked (Close or Body) | Close | Switch to Body mode for alternative ascending/descending validation |
| Entry Buffer (xATR, 0.0=at close) | Buffer added to entry price beyond strike close | 0.00 | Increase for wider entry buffer when volatility is high |
| SL Buffer (xATR) | Extra space added to stop loss beyond strike extreme | 0.10 | Increase in volatile markets, decrease for tighter stops |
| Trend SMA Period (0=disable) | SMA period for optional trend direction filter | 100 | Set to 0 to disable, or adjust period to match your trading style |
| Trade Direction | Trade with the 3-candle trend (Continuation), the strike (Reversal), or Both | Continuation | Switch to Reversal for counter-trend strategies |
| Min Quality (0.0-1.0, 0.30=relaxed) | Minimum quality score threshold to display a signal | 0.30 | Raise to see fewer but higher quality signals |
Settings Tips
- Start with all default settings and let the indicator run for a few days to see how it performs
- The Trade Direction setting is unique to this indicator — Continuation (default) trades with the original trend, Reversal trades with the strike candle
- If you get too many signals, raise the quality threshold to 50% or enable Strict Mode
- The Long Body Ratio at 0.60 ensures only well-formed trend candles are used — lower to 0.50 if signals are rare on your market
- 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 | Good | Moderate | Scalping, quick mean-reversion |
| H1 | Very Good | Low-Moderate | Day trading, intraday swings |
| H4 | Excellent | Low | Swing trading, multi-day holds |
| D1 | Excellent | Very Low | Position trading, major reversals |
Best Markets
- XAUUSD (Gold): Strong momentum moves create clear Three Line Strike patterns, especially on H1 and H4 timeframes
- EURUSD, GBPUSD, USDJPY: Major pairs provide clean staircase formations on all timeframes above M15
- US30, NAS100: Best results on H4 and Daily timeframes where institutional activity creates distinct 4-bar structures
- Cryptocurrency (BTCUSD, ETHUSD): Use H4 or Daily timeframe for clearer signals — lower timeframes produce noisy patterns
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 Line Strike Trading System:
- Open MetaTrader 5 and load your preferred chart (we recommend starting with XAUUSD on H1)
- In the Navigator panel (Ctrl+N), expand "Indicators" and find "Line Strike Trading System"
- Drag the indicator onto your chart
- A settings window appears — click OK to use the default settings for your first session
- Watch for signal arrows and trading lines to appear as the indicator scans your chart history
- After observing a few signals, adjust the Trade Direction or Quality Threshold based on your trading style
- Enable push notifications in Settings > Alerts if you want mobile alerts for new signals
That's it! The indicator is now scanning your charts automatically and will alert you when high-quality Three Line Strike patterns appear.
All Features at a Glance
Pattern-Specific Features
- Automatic 4-bar Three Line Strike detection with bullish/bearish classification
- 4-factor weighted quality scoring: stair-step consistency, engulf strength, strike body ratio, trend context
- Flexible trade direction system: Continuation (same as trend), Reversal (same as strike), or Both
- Staircase validation with Close and Body progression modes
- Optional Strict Mode for textbook patterns with gap and new high/low requirements
- Pattern-adaptive stop loss placement at strike candle extreme with ATR buffer
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 stop loss seem wide on some Three Line Strike signals?
The indicator places the stop loss at the strike candle's extreme (low for bullish, high for bearish) plus an ATR buffer. Since the strike candle engulfs the entire 3-candle range, it naturally produces wider stops. You can switch the SL Method to Donchian Channel for structure-based stops, or reduce the SL Buffer setting — but be aware this may increase false stop-outs.
Q: What is the difference between Continuation and Reversal trade direction?
Continuation mode (default) trades in the same direction as the 3 trend candles, treating the strike as a temporary pullback. Reversal mode trades in the direction of the strike candle, expecting the strike to mark the start of a new trend. Both modes are valid strategies — Continuation works well in strong trending markets, while Reversal works better at key support/resistance levels.
Q: How do I reduce the number of signals?
Three options: (1) Raise the Min Quality threshold from 0.30 to 0.50 or higher. (2) Enable Strict Mode to require gap and new high/low on the strike candle. (3) Increase the Long Body Ratio from 0.60 to 0.70 to demand stronger trend candles.
Q: What does Stair-Step Mode do?
Stair-Step Mode controls how the indicator validates the ascending/descending progression of the 3 trend candles. Close mode (default) requires each candle to close progressively higher (bullish) or lower (bearish). Body mode requires each candle's body high (bullish) or body low (bearish) to progress. Close mode is more common and works well for most markets.
Q: Can I use this indicator with an Expert Advisor?
Yes. The indicator exposes 10 signal buffers (Direction, Entry, SL, TP1-4, Quality, Signal ID) that any EA can read via iCustom(). See the EA Signal Buffers user guide for connection details and a ready-to-use EA template.
What's New — Version 1.00
This is the v1.00 release of Line Strike Trading System. Key features include:
- Automatic Bullish and Bearish Three Line Strike pattern detection on all timeframes
- 4-factor weighted quality scoring (stair-step consistency, engulf strength, strike body ratio, trend context)
- Flexible trade direction: Continuation (trend), Reversal (strike), or Both modes
- Staircase validation with Close and Body progression modes
- Optional Strict Mode for textbook-quality patterns
- 7-layer signal filter chain (quality, extreme zone, direction, SL hunt, signal zone, spacing, opposite)
- Multi-timeframe scanner monitoring up to 150 symbols across 8 timeframes
- Donchian Channel trailing stop with breakeven lock and dynamic adjustment
- 4-channel alert system (popup, sound, push, email) with anti-spam protection
- Market structure analysis with BOS/CHOCH detection and swing labeling
- 4 chart themes (Dark Muted, Dark, Light, Custom)
- 10 EA signal buffers for algorithmic trading integration
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?
Line Strike Trading System is designed to save you time and help you find high-probability Three Line Strike 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
Line Strike Trading System v1.00 — Created February 2026
