SMC Retest Trading System
- Indicators
-
Ich Khiem Nguyen
Premium MT5 Setups | Proprietary Indicators | Multi-TF Logic. Join for FREE signals!
MQL5 Channel : https://www.mql5.com/en/channels/tradingsystemkhiemni - Version: 1.0
- Activations: 10
SMC Retest Trading System is a MetaTrader 5 indicator that trades Break of Structure (BOS) and Change of Character (CHoCH) events by waiting for price to retest a broken structural level and then confirming entry using one of nine candlestick patterns. Every signal has triple confluence: a structural event, a retest of the broken level, and a pattern confirmation. The indicator works on any symbol and any timeframe, providing signals with pre-calculated entry, stop loss, and take profit levels drawn directly on the chart.
A detailed user guide is available on the author’s MQL5 Blog. Additional updates are available through the author’s MQL5 Channel.
Depending on the current support policy, buyers may receive additional access to selected companion tools developed by the author.
How the Indicator Finds Signals
The indicator uses a 3-stage pipeline that runs on every completed bar. All three stages must succeed before a signal appears on the chart.
Stage 1 — Structure Event: The indicator detects swing highs and lows using fractal analysis, then classifies each break as BOS (trend continuation) or CHoCH (trend reversal). A configurable Structure Trigger mode allows filtering by CHoCH only, BOS only, or both. Up to 10 tracked events are maintained in a rolling pool.
Stage 2 — Retest Detection: Each tracked structural event is monitored. When the current bar's close comes within a 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. Retest expiry can be set to a fixed bar count or ATR-adaptive mode.
Stage 3 — Pattern Confirmation: This stage only runs when a retest is active. It scans for the best matching candlestick pattern that aligns with the retest direction. Nine patterns are supported: Engulfing, Kicker, Hikkake, Outside Bar, Star, Piercing Line, Dark Cloud, Tweezer, and Harami Cross. The highest-quality match is selected.
After passing all three stages, the signal enters a filter layer where six independent filters can reject it before it reaches the chart.
Quality Score
Every signal receives a quality score from 0.00 to 1.00 that combines three components: the raw pattern quality from the candlestick scanner, a proximity bonus based on how close price is to the broken structural level, and a recency bonus based on how recently the structural event occurred. Signals near a fresh, nearby structure level score highest. The grading scale ranges from Grade A (0.80-1.00) for the strongest setups down to Grade F (0.00-0.19). By default, only signals scoring 0.35 or higher are displayed. This threshold is adjustable.
Structure Trigger Modes
The Structure Trigger setting controls which structural events generate signals. CHoCH mode generates signals only after trend reversal events, suitable for counter-trend strategies. BOS mode generates signals only after trend continuation events, suitable for trend-following strategies. BOTH mode (default) generates signals from both event types and produces the highest signal frequency.
Nine Confirmation Patterns
The pattern confirmation scanner recognizes nine candlestick formations: Engulfing (strong reversal with body overlap), Kicker (gap-based reversal), Hikkake (inside bar false breakout), Outside Bar (range expansion reversal), Star (Morning Star and Evening Star formations), Piercing Line (bullish penetration of prior body), Dark Cloud (bearish penetration of prior body), Tweezer (equal high or low rejection), and Harami Cross (inside doji reversal). Each pattern is scored individually, and the highest-quality match within the active retest window is selected.
Retest Configuration
The retest detection system offers two expiry modes. Fixed mode counts a set number of bars after the structural event (default 80 bars). Adaptive mode uses ATR to scale the waiting period based on current volatility. The Retest Zone Width parameter (default 2.0 ATR) controls how close price must come to the broken level to qualify as a retest.
Six Signal Filters
Six independent filters can reject signals before they reach the chart. Quality Filter blocks signals below a configurable quality threshold. Extreme Zone Filter blocks BUY signals near the top and SELL signals near the bottom of a Donchian Channel. Direction Filter restricts signals to a specific direction (BUY only, SELL only, or both). StoplossHunt Filter validates that liquidity was swept before the pattern formed. Signal Zone Filter requires signals to appear near a recent structural event zone. Opposite Signal Filter prevents conflicting signals when an active trade is running. Each filter is independently toggleable.
Stop Loss and Take Profit
Three stop loss methods are available. Donchian SL places the stop at the market's actual high or low within a configurable number of bars. ATR SL calculates a fixed distance from entry based on volatility. Pattern SL uses the candlestick structure directly and tends to produce tighter stops. Up to four take profit levels (TP1 through TP4) are defined as multiples of the risk distance. Each level can be individually disabled.
Trailing Stop Loss
An optional Donchian Channel trailing stop activates at a configurable R:R level and locks at breakeven after TP1 is reached. The trailing stop moves only in the profit direction.
Additional Features
The MTF Scanner monitors up to 150 symbols across 8 timeframes from a single chart. Built-in Market Structure detection identifies BOS and CHoCH events with visual overlays. The Signal Dashboard provides live statistics. A four-channel alert system covers popup, sound, push notifications, and email. Professional chart themes (Dark, Light, Custom) are included. EA signal buffers are available for automated trading integration.
Recommended Usage
The indicator is designed for manual trading. Recommended starting combinations include XAUUSD on H1 for balanced quality and frequency, major Forex pairs on M30 through H4, and indices on H1 and above. Start with all default settings and observe signals for several days before adjusting parameters. A separate EA integration is required for automated order execution.
Documentation
Complete documentation is available in the Traders' Blog section, including detailed user guides for every feature: Market Structure, Signal Zone Filter, StoplossHunt Filter, Risk/Reward and SL Methods, Trailing Stop Loss, MTF Scanner and Dashboard, Visualization and Signal Dashboard, Signal Types and Lifecycle, Opposite Signal Filter, Quality Filter, Chart Theme, and Alerts and Notifications.
Input Parameters
All input parameters are organized into clearly labeled groups: Structure Detection, Retest Configuration, Pattern Confirmation, Quality Scoring, Risk Filters (6 filters), Risk/Reward, Trailing Stop Loss, MTF Scanner, Visualization, Alerts, and MTF Scanner Notifications. Default values are designed to work immediately on most instruments and timeframes.
