| 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
Structure-First Multi-Pattern Retest Confirmation for MT5
Author: Ich Khiem Nguyen | MQL5: https://www.mql5.com/en/users/khiemni/seller
What is SMC Retest Trading System?
SMC Retest Trading System helps you trade Break of Structure (BOS) and Change of Character (CHOCH) events automatically on your MetaTrader 5 charts. The indicator waits for price to retest a broken structure level and then confirms entry using one of 9 candlestick patterns — so every signal has triple confluence: structure event, retest, and pattern. It works on any symbol and timeframe, giving you high-quality signals with pre-calculated entry, stop loss, and take profit levels.
What Are SMC Retest Patterns?
The Smart Money Concept (SMC) approach treats market structure — not individual candles — as the primary trading signal. A structural event (BOS or CHOCH) creates a key price level. When price returns to retest that level and a candlestick pattern confirms, the setup is complete.
BOS/CHOCH Bullish Retest (Bullish Signal)
A bullish retest forms when the market breaks above a swing high (BOS = trend continuation) or breaks above a prior low after a downtrend (CHOCH = reversal). Price then pulls back toward that broken level. When a bullish confirmation pattern appears during the pullback — an Engulfing candle, Morning Star, or similar — the indicator signals a long entry. The broken level now acts as support.
BOS/CHOCH Bearish Retest (Bearish Signal)
A bearish retest forms when the market breaks below a swing low (BOS = trend continuation) or breaks below a prior high after an uptrend (CHOCH = reversal). Price then rallies back toward that broken level. When a bearish confirmation pattern appears during the rally — an Engulfing candle, Evening Star, or similar — the indicator signals a short entry. The broken level now acts as resistance.
When candlestick confirmation aligns with a freshly broken structure level, the probability of follow-through increases significantly because both institutional activity (structure) and retail price action (pattern) are aligned.
How the Indicator Finds Patterns
The indicator uses a 3-stage pipeline that runs on every bar. All three stages must succeed before a signal appears:
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Stage 1 — Structure Event: Detects swing highs and lows using fractal analysis. Classifies each break as BOS (Break of Structure, trend continuation) or CHOCH (Change of Character, trend reversal). Filters by your chosen Structure Trigger mode. Up to 10 tracked events are maintained in a rolling pool.
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Stage 2 — Retest Detection: Monitors each tracked structural event. When the current bar's close comes within the configurable ATR-based zone of the broken level, the event becomes "retest active." Events that exceed the Max Bars to Wait for Retest window expire automatically.
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Stage 3 — Pattern Confirmation: Only runs when a retest is active. Scans for the best matching candlestick pattern (Engulfing, Kicker, Hikkake, OutsideBar, Star, PiercingLine, DarkCloud, Tweezer, or HaramiCross) that aligns with the retest direction. The highest-quality match wins.
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Filter Layer: 6 independent filters (Quality, Extreme Zone, Direction, Stoploss Hunt, Signal Zone, Opposite) can reject the signal before it reaches the chart.
Only signals that pass all active filters appear on your chart as actionable setups with trading levels drawn.
Quality Score — How Good Is the Pattern?
Every signal gets a quality score from 0.00 to 1.00. This helps you focus on the strongest setups.
What the Score Means
The score combines three components: the raw pattern quality from the candlestick scanner, a proximity bonus (how close price is to the broken structural level), and a recency bonus (how recently the structural event occurred). Signals near a fresh, nearby structure level 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 signals scoring 0.35 or higher. You can adjust this in the settings:
- Raise to 0.60-0.80: See only the best signals (fewer but higher quality)
- Lower to 0.20-0.30: See more signals (more frequent but mixed quality)
- Tip: Start with the default 0.35 and adjust based on your backtest results
What You See on the Chart
When the indicator detects an SMC Retest signal, it draws everything you need directly on the chart:
Signal Markers
- Arrow icons: Up arrow (green) for bullish signals, down arrow (red) for bearish signals — placed at the confirmation candle
- Quality labels: Score displayed next to the arrow (e.g., 0.72) so you can assess signal strength at a glance
Trading Lines
- Entry line: Blue horizontal line at the recommended entry price
- Stop Loss line: Red horizontal line labeled "SL" — placed below (bullish) or above (bearish) the structural zone
- Take Profit lines: Green horizontal lines labeled "TP1", "TP2" — spaced by risk-reward ratio
Visual Zones
- Structure lines: BOS and CHOCH event levels drawn as horizontal lines on the chart (toggleable via Show BOS/CHOCH Lines )
- Tracking dots: Small dots that change color as the signal evolves through its lifecycle
Signal Lifecycle
Signals progress through different states, shown by changing colors and tracking dots:
- Pending: Pattern just confirmed, waiting for price to reach the entry line
- Triggered: Entry price reached, trade is active
- Target Hit: Price reached a take profit level (signal turns green)
- Stop Hit: Price hit the stop loss (signal turns red)
- Cancelled: Signal invalidated before entry (signal 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 SMC Retest signals:
| Setting | What It Does | Default | When to Change It |
|---|---|---|---|
| Structure Trigger (CHOCH=reversal, BOS=continuation, BOTH) | Sets which structural events trigger signals: CHOCH for reversals, BOS for trend-following, or BOTH | BOTH | Use CHOCH for counter-trend trading; BOS for trend-following strategies |
| Retest Expiry Mode | Fixed bar count ( RETEST_FIXED ) or ATR-adaptive expiry ( RETEST_ADAPTIVE ) | RETEST_FIXED | Switch to ADAPTIVE on volatile instruments where fixed bar counts can be too short |
| Max Bars to Wait for Retest (5-500) | How many bars after a structural event the indicator waits for a retest before discarding it | 80 | Lower for scalping timeframes; raise for swing trading on higher timeframes |
| Retest Zone Width (×ATR, 0.1-5.0) | How close price must come to the broken level to count as a retest | 2.0 | Widen on volatile markets; tighten for precise structure traders |
| ATR Period for Retest Calc | ATR lookback period used for the retest proximity zone | 14 | Increase for smoother ATR on volatile instruments |
| Min Pattern Quality (0.0-1.0, 0.35=lenient) | Minimum quality score a signal must reach to appear on chart | 0.35 | Raise to 0.60+ for fewer, higher-quality signals |
| Extreme Zone Filter | Blocks BUY signals near the top and SELL signals near the bottom of the Donchian channel | true | Disable if your strategy specifically fades extremes |
| Enable Stoploss Hunt Filter | Confirms that liquidity was swept before the pattern printed | false | Enable for extra validation; may reduce signal count significantly |
| Trade Direction | Restrict signals to BUY only, SELL only, or both | DIR_MODE_DISABLED | Use with trend indicators to align signals with the dominant direction |
| Enable Signal Zone Filter | Only shows signals that occur near a recent BOS/CHOCH event zone | false | Enable for the most conservative filter setup |
| Fractal Bars (0=AutoTune) | Number of bars on each side to confirm a swing high/low | 0 (AutoTune) | Set manually if AutoTune produces too many or too few structure levels |
Settings Tips
- Start with all default settings and observe signals on your instrument for a few days before adjusting anything
- If you are getting too many signals, raise the quality threshold or switch Structure Trigger to CHOCH only
- If signals are too rare on a fast instrument, reduce Max Bars to Wait for Retest or widen Retest Zone Width
- Always backtest any setting changes on historical data before applying them to a live account
Best Timeframes and Markets
Recommended Timeframes
- M15 — Quality: Moderate | Frequency: High | Best for: Scalpers who want frequent intraday setups
- M30 — Quality: Moderate-High | Frequency: Medium-High | Best for: Scalping with slightly more filtered signals
- H1 — Quality: High | Frequency: Medium | Best for: Day traders seeking balanced quality and frequency
- H4 — Quality: Very High | Frequency: Low | Best for: Swing traders who prioritize quality over quantity
- D1 — Quality: Excellent | Frequency: Very Low | Best for: Position traders with a multi-day holding horizon
Best Markets
- XAUUSD (Gold): Excellent BOS/CHOCH clarity with strong structural swings — works well on all timeframes
- Major Forex Pairs (EURUSD, GBPUSD, USDJPY): Consistent structure behavior on M30 through H4
- Indices (US30, NAS100): Clear trending behavior with well-defined BOS/CHOCH on H1 and above
- Any trending instrument: The indicator performs best on symbols with clear directional bias and visible swing structure
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 SMC Retest Trading System:
- Open MetaTrader 5 and load your chart — start with XAUUSD on H1 for a balanced experience
- In the Navigator panel (Ctrl+N), expand Indicators and locate SMCRetestTradingSystem
- Drag the indicator onto your chart
- The Settings window appears — click OK to use all default values first
- The indicator draws BOS/CHOCH structure lines on the chart. Watch for colored arrows as signals appear
- After observing 10-20 signals, adjust Min Pattern Quality or Structure Trigger if needed
- Set up alerts under the Notifications group — enable popup, push, or email to be notified instantly
That's it! The indicator is now scanning your charts automatically and will alert you when high-quality SMC Retest patterns appear.
All Features at a Glance
- 3-stage signal pipeline: Structure Event → Retest Detection → Pattern Confirmation
- BOS/CHOCH structural event detection with configurable fractal swing analysis
- 9-pattern confirmation scanner (Engulfing, Kicker, Hikkake, OutsideBar, Star, PiercingLine, DarkCloud, Tweezer, HaramiCross)
- Fixed or Adaptive retest expiry (bar count or ATR-scaled)
- Configurable retest zone width (ATR-based proximity)
- Combined quality scoring: pattern quality + structure proximity + event recency
- Selectable structure trigger mode (CHOCH only, BOS only, or BOTH)
- Signal states and lifecycle tracking (Pending → Active → Finished)
- Quality filter to reject weak patterns below threshold
- Extreme zone filter (overbought/oversold rejection via Donchian Channel)
- Stoploss hunt filter (liquidity sweep validation)
- Opposite signal filter (prevent conflicting signals)
- Trade direction filter (BUY only / SELL only / both)
- Signal zone filter (near-structure-event requirement)
- 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) with visual overlays
- 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 is there sometimes no signal even though I can see a BOS/CHOCH line on the chart?
A BOS or CHOCH line means a structural event was detected, but the indicator also requires price to retest that level within the configured bar window AND a qualifying candlestick pattern to appear during the retest. If any stage fails — retest too late, no matching pattern, or a filter rejected it — no signal is drawn. Widen the Retest Zone Width or increase Max Bars to Wait for Retest if signals seem to be missed.
Q: What is the difference between BOS and CHOCH, and which should I use?
BOS (Break of Structure) signals trend continuation — the market broke in the direction it was already moving. CHOCH (Change of Character) signals a potential trend reversal — the market broke against the prior trend direction. Use BOS mode for trend-following strategies and CHOCH mode for reversal trading. The default BOTH mode generates the most signals and is best for learning the system.
Q: How do I reduce signal frequency without losing quality?
First, switch Structure Trigger from BOTH to either CHOCH or BOS only. Then raise Min Pattern Quality to 0.50 or 0.60. You can also enable the Signal Zone Filter or Extreme Zone Filter for additional tightening. Each change reduces quantity but keeps the highest-scoring setups.
Q: The stop loss looks wider than I expected — why?
The stop loss is placed beyond the structural zone plus a buffer based on ATR. This protects against normal volatility noise around the broken level. You can change the Stop Loss Method in settings — Pattern method uses the candle structure directly and tends to be tighter. Just be aware that tighter stops increase the chance of being stopped out by noise before the move follows through.
Q: Does the indicator repaint signals?
No. Once Stage 3 prints a signal on a closed bar, it does not repaint. The indicator only processes completed bars (per-bar mode, Rule R-46). The real-time bar may show a provisional state that resolves on bar close — this is normal behavior, not repainting.
What's New — Version v1.00
This is the initial release of SMC Retest Trading System. Key features include:
- 3-stage signal pipeline combining market structure, retest detection, and candlestick pattern confirmation
- BOS and CHOCH structural event detection with adaptive fractal swing analysis
- 9-pattern confirmation scanner covering major multi-bar reversal and continuation patterns
- Fixed and Adaptive retest expiry modes with ATR-based zone width
- Combined quality scoring factoring structure proximity and event recency
- 6 independent filter systems (Quality, Extreme Zone, Stoploss Hunt, Direction, Signal Zone, Opposite)
- Full SharedFramework integration: MTF Scanner, 3 SL methods, 4 TP levels, Donchian trailing stop
- 4-channel alert system with screenshot notifier
- Professional chart themes and EA signal buffer 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?
SMC Retest Trading System is designed to save you time and help you find high-probability trade setups automatically by combining structure analysis, retest detection, and pattern confirmation in a single pipeline. 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
SMC Retest Trading System v1.00 — Created 2026-03-02
