| 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
Single-Candle Reversal from an Opening Extreme
Author: Ich Khiem Nguyen | MQL5: https://www.mql5.com/en/users/khiemni/seller
What is BeltHoldTradingSystem?
BeltHoldTradingSystem detects Belt Hold candlestick patterns on your MetaTrader 5 charts automatically. The indicator evaluates each completed bar against four structural gates, scores surviving patterns across six weighted quality factors, and enters immediately at the candle close when a valid Belt Hold is confirmed. Entry price, stop loss, and take profit levels are drawn directly on the chart so you can assess the trade rather than perform the calculations manually.
What Is a Belt Hold Pattern?
A Belt Hold is a single-candle reversal formation in which the candle opens at one extreme of its range — the lowest price for a bullish setup or the highest price for a bearish setup — and closes strongly in the opposite direction. The open-side shadow is absent or negligible (the "shaved" side), while the close side may carry a small permitted shadow. This asymmetry signals that one side of the market took control at the very start of the session and never relinquished it.
The Belt Hold is also known as an Opening Marubozu because it shares the Marubozu family's defining feature: an open that equals the session extreme. Where a Full Marubozu requires both sides to be shaved, the Belt Hold requires only the open side to be shaved, making it more common and reflecting a broader range of reversal scenarios.
Bulkowski's research places the Bullish Belt Hold at a 71% reversal rate and the Bearish Belt Hold at 68% — among the more reliable single-candle reversal formations.
Bullish Belt Hold
Appears after a downtrend. The candle opens at its low — no lower shadow exists below the body — and closes near the top of the range. Sellers had no opportunity to push below the open; buyers controlled the session from the first tick. When this structure forms after at least two declining bars, the indicator classifies it as a Bullish Belt Hold.
Bearish Belt Hold
Appears after an uptrend. The candle opens at its high — no upper shadow exists above the body — and closes near the bottom of the range. Buyers had no opportunity to push above the open; sellers controlled the session from the first tick. When this structure forms after at least two rising bars, the indicator classifies it as a Bearish Belt Hold.
Trend Context Detection
The indicator examines the three bars immediately before each candidate candle. If at least two of those bars are declining (lower closes), the pattern is classified as a Bullish Belt Hold. If at least two are rising (higher closes), it becomes a Bearish Belt Hold. When context is ambiguous — neither direction reaching the two-bar threshold — the indicator defaults to the candle body direction (bullish body → Bullish Belt Hold; bearish body → Bearish Belt Hold).
How the Indicator Finds Patterns
The indicator evaluates each completed bar against four sequential gates. All four must pass for a signal to be generated.
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Forbidden shadow gate: The shadow on the open side must remain at or below the maximum allowed ratio of total range (Standard: 5%, Strict: 3%). This is the defining criterion of the Belt Hold — the shaved open side. A candle with meaningful shadow on the open side is not a Belt Hold, and this gate is treated as a hard rule that cannot be bypassed by quality scoring.
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Body ratio gate: The candle body must represent at least the minimum required fraction of total range (Standard: 70%, Strict: 75%). This confirms that the body dominates the candle structure and that the session's directional move was strong and sustained.
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Body/ATR gate: The candle body must equal or exceed the minimum multiple of ATR (Standard: 0.40×, Strict: 0.50×). This rejects small candles forming during low-volatility sessions, which carry limited directional significance.
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Allowed shadow gate: The shadow on the close side must remain at or below the maximum allowed ratio of total range (Standard: 20%, Strict: 15%). A large shadow on the close side would suggest significant counter-pressure late in the session, which weakens the reversal story.
Only candles passing all four gates proceed to quality scoring and signal registration.
Quality Score — Evaluating Pattern Strength
Every pattern that clears detection receives a quality score between 0.00 and 1.00. Six factors contribute to this score, each weighted by its contribution to the Belt Hold's structural integrity.
Quality Factors
| Factor | Weight | What It Measures | Direction |
|---|---|---|---|
| QF-1: Forbidden Shadow Ratio | 0.35 | Absence of shadow on the open side — smaller is better | INVERTED |
| QF-2: Body/ATR | 0.25 | Candle body size relative to recent volatility | Ideal [0.60, 2.50] |
| QF-3: Body Ratio | 0.20 | Proportion of candle range occupied by body | Ideal [0.80, 1.00] |
| QF-4: Allowed Shadow Ratio | 0.10 | Shadow on close side — smaller is better | INVERTED |
| QF-5: Close vs Prior Range | 0.05 | How far current close extends into prior candle's range | Ideal [0.50, 1.20] |
| QF-6: Relative Body | 0.05 | This candle's body compared to previous candle body | Ideal [1.00, 3.50] |
QF-1 and QF-4 are inverted factors: lower values produce higher scores. QF-1 carries the highest weight (0.35) because the near-absent forbidden shadow is the core structural requirement of the Belt Hold — patterns with a perfectly shaved open side score significantly higher than those near the detection limit.
Score Grades
- Grade A (0.80 - 1.00) — Excellent: Near-perfect open-side shave, large body relative to ATR, body ratio above 0.85
- Grade B (0.60 - 0.79) — Good: Reliable setups with strong forbidden shadow score and solid body metrics
- Grade C (0.40 - 0.59) — Average: Valid structure but open-side shave is near the detection threshold; use with additional confirmation
- Grade D (0.20 - 0.39) — Below Average: Marginal setup; higher false signal risk
- Grade F (0.00 - 0.19) — Poor: Avoid trading these signals
Quality Threshold
The default minimum quality is 0.30. Adjusting this threshold changes which patterns appear on the chart:
- 0.50 - 0.65: Shows only the most structurally sound Belt Holds with near-perfect open-side shaving and strong body metrics — fewer signals with higher per-signal quality
- 0.20 - 0.30: Shows more signals including weaker structural examples — useful for research or studying the pattern across different market conditions
- Tip: Start with the default 0.30 on your chosen symbol and timeframe and observe several dozen signals before adjusting
Entry Mode: Immediate
Unlike patterns that use pending stop orders, the Belt Hold uses immediate entry at the candle close. When a valid Belt Hold is confirmed on bar close, the system enters the trade at that moment rather than waiting for a breakout above the pattern high or below the pattern low.
This reflects the nature of the pattern: the open-at-extreme structure means the rejection occurred at the very start of the session. Waiting for a breakout would delay entry beyond the signal event. Immediate entry captures the full move that typically follows.
Trading Levels
Bullish Belt Hold:
- Entry = close of the Belt Hold candle
- Stop Loss = pattern low − 0.25×ATR
Bearish Belt Hold:
- Entry = close of the Belt Hold candle
- Stop Loss = pattern high + 0.25×ATR
The stop loss buffer of 0.25×ATR is placed beyond the opposite extreme of the Belt Hold candle. For a Bullish Belt Hold, the pattern low is the candle's open (and low), which is the level where buyers stepped in at the session start — a break below this level invalidates the reversal premise.
Take profit levels are calculated from entry using configurable risk-reward multiples (default: 1R, 2R, 3R, 5R from entry to stop distance).
What You See on the Chart
When a Belt Hold pattern passes all detection gates and quality filters, the indicator draws the following:
Signal Markers
- Arrow icons: Blue upward arrows mark Bullish Belt Hold patterns; orange downward arrows mark Bearish Belt Hold patterns. Gray arrows indicate signals blocked by an active filter such as the Opposite Signal filter.
- Quality labels: A numeric score (e.g., "0.74") appears near each signal, showing how the pattern ranked across all six quality factors.
Trading Lines
- Entry line: An orange horizontal line at the immediate entry level — the close of the Belt Hold candle
- Stop Loss line: A red horizontal line labeled "SL" — placed below the pattern low (Bullish) or above the pattern high (Bearish) with an ATR buffer
- Take Profit lines: Up to four green horizontal lines labeled TP1 through TP4, spaced at configurable R:R multiples from the entry level
Visual Zones
- Pattern highlight: A shaded rectangle spans the Belt Hold candle, making it easy to identify which bar triggered the signal. The risk zone between entry and SL is shaded in red; reward zones between entry and each TP level are shaded progressively lighter.
- Tracking dots: Small colored dots update as the signal state changes — white for pending (immediate entry, tracking), yellow for active, green for target hit, red for stop hit.
Signal Lifecycle
- Active: Immediate entry placed at candle close — trade is live
- Target Hit: Price reached a take profit level
- Stop Hit: Price reached the stop loss
- Cancelled: Signal invalidated before close
Settings You Can Adjust
Detection Parameters
| Setting | What It Does | Default | When to Change |
|---|---|---|---|
| ATR Period for volatility | Bars used to calculate ATR, normalizing all range-based thresholds to current volatility | 14 | Increase to 20+ for smoother ATR on noisy markets |
| Max Bars to Scan (history depth) | Historical bars scanned on first load to display past patterns | 3000 | Increase for more history on higher timeframes |
| Min Bars Between Patterns | Minimum gap between two consecutive signals | 5 | Increase to 7-10 if signals cluster; decrease to 3 for more |
| Detection Preset | Switches between Standard, Strict, and Custom modes | PRESET_STANDARD | Use Strict for higher-conviction setups |
| Quality Score Filter | Enables the quality filter | true | Keep enabled for live trading |
| Min Quality (0.0-1.0) | Minimum quality score a pattern must achieve to display | 0.30 | Raise to 0.50+ for fewer but stronger signals |
Detection Preset Values
| Parameter | STANDARD | STRICT |
|---|---|---|
| Max Forbidden Shadow Ratio | 0.05 (5%) | 0.03 (3%) |
| Min Body/ATR | 0.40 | 0.50 |
| Min Body Ratio | 0.70 (70%) | 0.75 (75%) |
| Max Allowed Shadow Ratio | 0.20 (20%) | 0.15 (15%) |
Custom Threshold Parameters
| Setting | What It Does | Default | When to Change |
|---|---|---|---|
| [Custom] Max Forbidden Shadow Ratio | Maximum open-side shadow as a fraction of total range (Std=0.05, Strict=0.03) | 0.05 | Decrease to 0.02 for near-perfect shaves only |
| [Custom] Min Body/ATR | Minimum body size as a multiple of ATR (Std=0.40, Strict=0.50) | 0.40 | Increase to 0.60+ to require larger, more significant candles |
| [Custom] Min Body Ratio | Minimum body as a fraction of total range (Std=0.70, Strict=0.75) | 0.70 | Increase to 0.80 for dominant-body requirement |
| [Custom] Max Allowed Shadow Ratio | Maximum close-side shadow as a fraction of range (Std=0.20, Strict=0.15) | 0.20 | Decrease to 0.10 for near-shadowless candles |
| SL Buffer (xATR beyond pattern extreme) | Offset placed beyond the pattern low (Bullish) or high (Bearish) | 0.25 | Increase to 0.35 on volatile instruments |
Settings Tips
- Begin with the Standard preset and default quality threshold on your chosen symbol; observe at least two to three weeks of signals before adjusting
- If Standard produces too many signals on XAUUSD H1, raise Min Quality to 0.50 rather than switching to Strict — this preserves detection sensitivity while filtering out weaker structural examples
- The forbidden shadow gate (5% Standard) is more permissive than the Strict value (3%); on markets where clean Belt Holds are common, Strict produces a cleaner signal set
- Avoid cutting the SL buffer below 0.20×ATR — Belt Hold lows/highs are the logical invalidation point for the reversal, and some retesting of that level is normal before the move develops
Best Timeframes and Markets
Recommended Timeframes
- H1 — Quality: High | Frequency: Medium | Best for: Day traders seeking clear reversal setups at intraday support and resistance levels; recommended starting point
- H4 — Quality: High | Frequency: Lower | Best for: Swing traders who want well-formed Belt Hold patterns with strong follow-through potential
- M15 — Quality: Medium | Frequency: High | Best for: Scalpers wanting frequent Belt Hold signals during active session hours
- D1 — Quality: Highest | Frequency: Low | Best for: Position traders seeking textbook Belt Hold formations at major daily structure levels
Best Markets
- XAUUSD (Gold): Belt Hold patterns on H1 and H4 frequently mark significant intraday reversal points, particularly during London and New York session crossovers
- Major forex pairs (EURUSD, GBPUSD, USDJPY): Belt Hold formations are common at key intraday levels, especially near round numbers and session open prices
- Indices (US30, NAS100): Bearish Belt Hold patterns near prior highs and Bullish Belt Hold patterns near prior lows can mark intraday turning points
- Oil (USOIL): Strong Belt Hold formations appear after sharp directional moves on H1 and H4
The indicator works on any symbol and timeframe. H1 with the Standard preset on XAUUSD is the recommended starting configuration.
Getting Started — Quick Setup
- Open MetaTrader 5 and load a chart (XAUUSD on H1 is a good starting point)
- In the Navigator panel (Ctrl+N), expand Indicators → Custom and locate BeltHoldTradingSystem
- Drag the indicator onto the chart
- In the settings dialog, select Detection Preset (Standard recommended for first use) and click OK — the indicator will scan history and display detected patterns immediately
- Observe the signals: blue upward arrows indicate Bullish Belt Hold patterns; orange downward arrows indicate Bearish Belt Hold patterns
- Check the quality score on each signal — focus on patterns scoring 0.50 or higher when starting out
- Optional: Enable alerts in the ALERTS section to receive notifications when new patterns form in real-time
All Features at a Glance
- Automatic Bullish and Bearish Belt Hold (Opening Marubozu) single-candle detection on any symbol and timeframe
- 4-gate structural detection: forbidden shadow ratio (HARD RULE), body ratio, body/ATR, allowed shadow ratio
- 6-factor weighted quality scoring (forbidden shadow inverted 0.35, body/ATR 0.25, body ratio 0.20, allowed shadow inverted 0.10, close vs prior range 0.05, relative body 0.05)
- Trend context detection using 3-bar prior price action: downCount >= 2 → Bullish, upCount >= 2 → Bearish
- 3 detection presets: Standard, Strict, Custom (user-defined thresholds)
- Immediate entry at candle close (not pending order)
- Signal states and lifecycle tracking
- Quality filter to suppress 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 Channel, ATR, Pattern)
- Up to 4 take profit levels (TP1-TP4) at configurable R:R ratios
- 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: What is the difference between a Belt Hold and a Marubozu?
Both patterns belong to the same structural family. A Full Marubozu requires both the open and the close to be at the session extremes — no shadow on either side. A Belt Hold (Opening Marubozu) requires only the open side to be shaved; the close side may carry a small shadow. The Belt Hold is more common and captures a broader set of reversal scenarios where sellers (or buyers) dominate from the start but price does not necessarily close at the absolute extreme.
Q: Why does the indicator use immediate entry instead of a Buy Stop or Sell Stop?
The Belt Hold's defining feature is that the open equals the session extreme — the rejection point occurred at the very start of the candle, not at a breakout level above or below. Waiting for price to break above the high (as with a Buy Stop) would delay entry well after the signal event. Immediate entry at the close captures the move as defined by the pattern's structure.
Q: Why is the forbidden shadow gate described as a hard rule?
A candle with meaningful shadow on the open side is structurally distinct from a Belt Hold — it means buyers (or sellers) were pushed away from the open before recovering, which tells a different story. No amount of body strength or quality scoring compensates for a violated open-side structure. The forbidden shadow gate cannot be bypassed by raising the quality threshold; it must pass at the detection level.
Q: What does "trend context" mean for the Belt Hold?
The indicator checks the three bars before the candidate candle. For a bullish body candle to be classified as a Bullish Belt Hold, at least two of those bars must be declining. For a bearish body candle to be a Bearish Belt Hold, at least two must be rising. If the context is ambiguous, the indicator defaults to classifying based on candle body direction. The Bulkowski statistics (71% bullish / 68% bearish reversal rate) are based on context-aware classification.
Q: What if both Bullish and Bearish Belt Hold signals appear on the same area?
If the Opposite Signal filter is enabled (InpOppositeFilter = true), the indicator prevents conflicting signals from being registered simultaneously. When a signal in the opposite direction is already active, new signals will either be blocked entirely or shown as gray blocked arrows depending on the InpShowBlockedIndicator setting.
Q: How do I reduce the number of signals?
Raise the Min Quality threshold to 0.50 or higher. You can also switch to the Strict preset (tighter forbidden shadow and body thresholds), enable the Direction Filter to restrict signals to the dominant trend direction, or enable the Extreme Zone Filter to block signals near overbought/oversold extremes.
What's New — Version 1.00
This is the initial release of BeltHoldTradingSystem. Key features include:
- Belt Hold (Opening Marubozu) detection using 4-gate structural validation with hard-rule forbidden shadow enforcement
- 6-factor weighted quality scoring with forbidden shadow dominance (0.35 weight) rewarding perfectly shaved open-side structures
- Trend context detection from 3-bar prior price action to distinguish Bullish and Bearish Belt Hold variants
- Standard and Strict presets, plus fully customizable Custom threshold mode
- Immediate entry at candle close — no pending stop order required
- 7-layer filter chain (Quality, Extreme Zone, Direction, Stoploss Hunt, Signal Zone, Market Structure, Opposite Signal)
- Multi-timeframe scanner covering up to 150 symbols and 8 timeframes simultaneously
- Automated Entry/SL/TP levels with Donchian Channel trailing stop
- 4-channel alert system (popup, sound, push notification, email)
- EA signal buffers enabling automated trading systems to consume Belt Hold signals via iCustom()
- Professional chart themes (Dark, Light, Custom) for extended trading sessions
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
Ready to Start?
BeltHoldTradingSystem identifies the structural moment when one side of the market takes control from the opening tick and holds it through the close. Attach the indicator to your chart, start with the Standard preset on XAUUSD H1, and observe how the open-side shaving aligns with the reversals you would identify manually.
Happy trading!
Ich Khiem Nguyen
BeltHoldTradingSystem 1.00 — Created 2026-02-24
