Discussing the article: "From Novice to Expert: Automating Base-Candle Geometry for Liquidity Zones in MQL5"
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Check out the new article: From Novice to Expert: Automating Base-Candle Geometry for Liquidity Zones in MQL5.
This article implements an MQL5 module that analyzes the lower‑timeframe bars inside each liquidity‑zone base candle. It detects swing points and applies objective rules to classify the internal structure as an ascending, descending, or symmetrical triangle; a rectangle; M; W; or undefined. The indicator displays geometry labels on the chart and adds the pattern to alerts, reducing manual lower‑timeframe inspection.
Let us examine a real sequence captured in Fig. 1. The chart is set to M5, and the higher timeframe for liquidity detection is H1. This means every hourly base candle contains exactly 12 five‑minute bars—enough granularity to observe meaningful internal structure. The first notable shape is a descending triangle (flat support with falling resistance). Instead of breaking downward, price broke upward, creating a demand zone. This demand zone later became a launchpad for a reversal. Following that, price entered a rectangular consolidation—a tight horizontal range with multiple touches of both boundaries. The rectangle acted as a springboard, generating an impulsive move that tested the previously formed demand area.
Further right on the same chart, we see a double top (labeled 1 and 2). Two distinct peaks of nearly equal height formed, with a clear trough between them. After the second peak, the price broke below the neckline, creating a valid supply zone. That supply zone led to a strong sell‑off. Later, price retraced back to the supply zone—a classic retest. This time, the rejection was sharp and decisive: price formed an inverted V (a spike up followed by an immediate aggressive drop). The inverted V confirms that the supply zone is still active, and sellers are defending the level. Such a reaction is difficult to identify without the internal geometry of the base candle that formed the supply zone.
Author: Clemence Benjamin