| 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
2-Bar Inside Reversal Detection with Quality Scoring
Author: Ich Khiem Nguyen | MQL5: https://www.mql5.com/en/users/khiemni/seller
What is Harami Trading System?
Harami Trading System helps you spot Harami (inside reversal) 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 Harami Patterns?
Harami patterns are powerful reversal patterns that appear when market momentum shifts from one direction to the other. The name "Harami" comes from the Japanese word for "pregnant" — the large mother candle contains the smaller child candle within its body, like a mother carrying a child.
Bullish Harami (Bullish Reversal)
After a sustained downtrend, a large bearish (red) candle appears, showing sellers still dominate. But on the very next bar, price opens within the mother candle's body and forms a small candle that stays completely inside the mother's body range. This sudden contraction in range signals that selling pressure has dried up. Buyers are stepping in, compressing the market for a potential upward breakout.
Bearish Harami (Bearish Reversal)
After a sustained uptrend, a large bullish (green) candle appears, showing buyers still dominate. But on the very next bar, price opens within the mother candle's body and forms a small candle that stays completely inside the mother's body range. This sudden contraction in range signals that buying pressure has dried up. Sellers are stepping in, compressing the market for a potential downward breakout.
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:
- Checks that the first candle (mother) has a strong, decisive body showing clear trend direction
- Verifies the second candle (child) forms entirely inside the mother's body — this is the key "inside bar" check
- Evaluates the overlap ratio — how much of the child sits within the mother's range
- Scores additional factors like direction change, relative body size, and mother candle significance
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 0.00 to 1.00. This helps you focus on the best trading opportunities.
What the Score Means
The indicator evaluates 6 weighted factors: how cleanly the child fits inside the mother (25%), how much overlap exists between them (20%), whether the child reversed direction (15%), the child's relative body size (15%), the mother's body significance relative to ATR (15%), and the mother's body-to-range ratio (10%). Patterns with strong inside containment, clear direction reversal, and significant mother candles score highest.
- Grade A (0.80 - 1.00) — Excellent: Best signals, highest probability setups
- Grade B (0.60 - 0.79) — Good: Reliable setups worth trading
- Grade C (0.40 - 0.59) — Average: Needs additional confirmation
- Grade D (0.20 - 0.39) — Below Average: Risky, use with caution
- Grade F (0.00 - 0.19) — Poor: Avoid trading these signals
Quality Threshold Setting
By default, the indicator only shows patterns scoring 0.30 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 0.15 - 0.25: See more signals (more frequent but mixed quality)
- Tip: Start with the default 0.30 and adjust based on your backtest results
What You See on the Chart
When the indicator detects a Harami pattern, it draws everything you need to know directly on the chart:
Signal Markers
- Arrow icons: Green up-arrow for Bullish Harami, red down-arrow for Bearish Harami, placed at the child candle
- Quality labels: Score displayed next to each signal (e.g., "0.72" or "A")
Trading Lines
- Entry line: Blue horizontal line at the entry price (Buy Stop above pattern high, Sell Stop below pattern low)
- Stop Loss line: Red line at the opposite pattern extreme + ATR buffer
- Take Profit lines: Green lines at TP1 (1R), TP2 (2R), TP3 (3R), TP4 (4R) with R:R labels
Visual Zones
- Pattern highlight: Shaded rectangle covering the 2-bar Harami pattern area
- Tracking dots: Colored dots showing signal progress from pending through completion
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 Harami patterns:
| Setting | What It Does | Default | When to Change It |
|---|---|---|---|
| ATR Period for volatility | Period for calculating Average True Range used in all ATR-normalized thresholds | 14 | Increase for smoother readings on volatile pairs |
| Min Mother Body/ATR (0.12=12%, relaxed for forex) | Minimum mother candle body size relative to ATR | 0.12 | Raise to 0.20 if getting too many weak mothers |
| Min Mother Range/ATR (0.30=relaxed) | Minimum mother candle total range relative to ATR | 0.30 | Raise to 0.50 for more significant mother candles only |
| Max Child/Mother Body Ratio (0.80=80%) | Maximum child body as percentage of mother body | 0.80 | Lower to 0.60 for stricter inside containment |
| Inside Tolerance (xATR, 0.05=5%) | How much the child body can exceed mother body edges | 0.05 | Lower to 0.02 for strict inside-only patterns |
| Require Trend Bars Before Pattern (0=disable) | Number of same-direction bars before the mother candle | 0 | Set to 2-3 if you want trend context confirmation |
| Min Quality (0.0-1.0, 0.30=relaxed) | Minimum quality score to show a signal | 0.30 | Raise to 0.50 for fewer, stronger signals |
| SL Buffer (xATR above/below pattern) | Extra distance added to stop loss beyond pattern extreme | 0.10 | Increase for volatile markets, decrease for tight stops |
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 lower the Max Child/Mother Body Ratio
- If signals are too rare, check if Inside Tolerance is too tight or Mother Body/ATR is too high
- Always backtest any setting changes before using them on a live account
Best Timeframes and Markets
Recommended Timeframes
- M15 — Quality: Medium | Frequency: Very High | Best for: Scalpers who want quick inside-bar reversals on intraday swings
- H1 — Quality: High | Frequency: High | Best for: Day traders seeking clear intraday Harami setups with good follow-through
- H4 — Quality: Very High | Frequency: Medium | Best for: Swing traders who want well-defined inside reversals at session boundaries
- D1 — Quality: Excellent | Frequency: Low | Best for: Position traders looking for high-conviction daily reversal signals
Best Markets
- XAUUSD (Gold): Excellent Harami clarity on H1 and H4 — gold's momentum shifts produce clean inside bars
- EURUSD, GBPUSD, USDJPY: Work well on all timeframes above M15, major pairs have reliable inside-bar patterns
- US30, NAS100: Best results on H4 and Daily — index volatility creates well-defined mother candles
- Cryptocurrency (BTCUSD): Use H4 or Daily timeframe for clearer inside containment signals
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 Harami Trading System:
- Open MetaTrader 5 and load your chart (we recommend starting with XAUUSD on H1)
- In the Navigator panel (Ctrl+N), expand "Indicators" and find "Harami Trading System"
- Drag the indicator onto your chart
- A settings window appears — click OK to use the default settings (recommended for first use)
- Watch for signals over the next few hours — green arrows for bullish, red for bearish
- After seeing a few signals, adjust the Quality Threshold if you want more or fewer signals
- To receive mobile alerts, enable "Allow notifications" in MT5 settings and turn on Push Alerts in the indicator inputs
That's it! The indicator is now scanning your charts automatically and will alert you when high-quality Harami patterns appear.
All Features at a Glance
- Automatic Harami (inside reversal) detection for both Bullish and Bearish variants
- 6-factor weighted quality scoring: inside bar, overlap, direction change, relative body, mother ATR, mother ratio
- ATR-normalized detection thresholds that adapt to any market volatility
- Configurable inside tolerance for strict or relaxed containment matching
- Signal states and lifecycle tracking (Pending → Active → Finished)
- Quality filter to reject weak patterns below threshold
- Extreme zone filter (overbought/oversold rejection)
- Stoploss hunt filter (liquidity sweep validation)
- Opposite signal filter (prevent conflicting signals)
- Risk/Reward with 3 stop loss methods (Donchian, ATR, Pattern)
- Up to 4 take profit levels (TP1-TP4)
- Donchian Channel trailing stop loss
- MTF Scanner (up to 150 symbols × 8 timeframes)
- Market structure analysis (BOS / CHOCH)
- 4-channel alert system (popup, sound, push, email)
- Signal statistics dashboard
- Professional chart themes (Dark, Light, Custom)
- EA signal buffers for automated trading
For detailed guides on each feature, see the MANUAL included with the indicator.
Common Questions
Q: Why does the indicator sometimes show Harami patterns where the child candle has the same color as the mother?
The classic Harami definition requires the child to reverse color (bearish mother → bullish child). However, research shows that the inside containment structure itself is the key signal — color reversal is a quality bonus, not a requirement. Same-color Harami patterns score lower on the direction change factor but can still be valid reversal signals, especially at key support/resistance levels.
Q: What's the difference between Harami and an Inside Bar?
A traditional Inside Bar requires the child's entire range (high-to-low) to fit within the mother's range. A Harami specifically focuses on the child's body fitting inside the mother's body. This indicator uses the body-based Harami definition with configurable tolerance, making it slightly more permissive than a strict Inside Bar while focusing on the body structure that matters most for reversal significance.
Q: How do I reduce the number of signals if I'm getting too many?
Three effective ways: (1) Raise the Min Quality threshold from 0.30 to 0.50 or higher — this keeps only the strongest patterns. (2) Lower the Max Child/Mother Body Ratio from 0.80 to 0.60 — this requires tighter containment. (3) Increase the Min Mother Body/ATR to require more significant mother candles.
Q: Is the stop loss always at the opposite pattern extreme?
By default, the indicator uses Donchian Channel (lowest low / highest high over N bars) for stop loss placement, which adapts to market structure. You can switch to ATR-based (fixed distance from entry) or Pattern-based (opposite extreme + buffer) via the SL Method setting. Donchian tends to give the most balanced risk/reward.
Q: Can I use this indicator with an Expert Advisor for automated trading?
Yes! The indicator provides 10 EA signal buffers accessible via iCustom(). Buffer 0 contains signal direction, Buffer 1 the entry price, Buffer 2 the stop loss, and Buffers 3-6 the four take profit levels. Your EA can read these buffers to automatically place pending orders when signals appear.
What's New — Version 1.00
This is the v1.00 release of Harami Trading System. Key features include:
- Automatic Harami (inside reversal) detection for Bullish and Bearish patterns
- 6-factor weighted quality scoring with configurable thresholds
- ATR-normalized detection for universal market compatibility
- 3 stop loss methods: Donchian Channel, ATR Multiplier, Pattern-specific
- 4 take profit levels with configurable R:R ratios (1R, 2R, 3R, 4R)
- Donchian Channel trailing stop with auto-activation
- Multi-timeframe scanner (150 symbols × 8 timeframes)
- Market structure analysis (BOS / CHOCH)
- 7-layer signal filtering system
- 4-channel alert system with anti-spam protection
- Professional chart themes (Dark, Dark Muted, Light, Custom)
- EA signal buffers for automated 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?
Harami Trading System is designed to save you time and help you find high-probability Harami 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
Harami Trading System v1.00 — Created February 2026
