HTF 3 candle system
- Indicators
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Shipra Gupta
I’m Shipra Gupta, a trader and quantitative strategy developer with a strong background in mathematics, economics, and algorithmic trading systems. Over the years, I’ve worked extensively across forex, gold, indices, commodities, and crypto markets, focusing on building data-driven trading - Version: 1.0
HTF 3-Candle System for MetaTrader 5
The HTF 3-Candle System is an advanced multi-timeframe structural analysis indicator for MetaTrader 5. Adapted from institutional price-action methodologies (ICT/SMC), this tool dynamically breaks down higher timeframe price sequences (C1, C2, and C3) to evaluate market structure, identify high-probability setup patterns, and score potential trade setups in real time.
Instead of relying on lagging indicators, the HTF 3-Candle System scores market conditions using a proprietary 12-Pattern Scoring Model that incorporates liquidity sweeps, fair value gaps, power-of-3 cycles, and market structure breaks.
Key Features
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Multi-Timeframe Structural Mapping: Overlays Higher Timeframe (HTF) candle structures directly onto your lower timeframe trading charts.
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12-Pattern Scoring & Classification Engine: Evaluates price action across 6 core trading families with percentage confidence scores:
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Liquidity: Bullish & Bearish Sweep Reversals
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Imbalance: Bullish & Bearish FVG Displacements
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Power of 3 (PO3): Accumulation / Manipulation / Distribution Sequences
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Continuation: Bullish & Bearish Expansion
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Compression: Range Breakouts & Contractions
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Reversals: Morning Star & Evening Star Formations
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Real-Time Projection Engine: Renders standalone projected HTF candles off to the right of your price chart for immediate structural clarity.
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Key Reaction & Invalidation Levels: Automatically projects high-probability reaction levels, Fair Value Gap midpoints (CE 50%), liquidity sweep levels, and structural invalidation points.
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On-Chart Heads-Up Display (HUD): Information panel showing the top 3 matching patterns, scoring percentages, and live sequence state updates (e.g., “PO3 DISTRIBUTION LIVE”, “AWAITING C3 CLOSE”).
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Execution Signals & Alerts: Non-repainting buy/sell signal arrows plotted at HTF candle completion, accompanied by native pop-up, audio, and terminal alerts.
Technical Specifications & Inputs
Core Settings
| Parameter | Default | Description |
| Higher Timeframe | H1 | Select the HTF structure to analyze (e.g., H1, H4, D1). |
| Strong Match Threshold (%) | 70.0 | Minimum score percentage required to trigger signal arrows/alerts. |
| History Limit (bars) | 1000 | Limits signal computation history to optimize terminal performance. |
Visual Customization
| Parameter | Default | Description |
| Show Buy/Sell Arrows | true | Plots execution arrows on HTF sequence confirmations. |
| Show HTF Mapping Boxes | true | Draws shaded background boxes around C1, C2, and C3 candles. |
| Show Projected HTF | true | Displays projected HTF candle bodies on the right side of the chart. |
| Show Level Lines | true | Plots dynamically calculated key levels and invalidations. |
| Show Info Panel | true | Displays the top-ranked pattern summary HUD. |
| Enable Alerts | false | Triggers pop-up alerts on newly confirmed strong patterns. |
How It Works
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Window Segmentation: The indicator isolates the last three completed or forming HTF candles:
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C1 (Setup/Anchor Candle): Defines the structural reference point (Highs, Lows, Midpoint).
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C2 (Transition Candle): Measures liquidity grabs, inside-bar compressions, or displacement.
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C3 (Confirmation Candle): Evaluates breakout/breakdown conditions, FVG creation, or close confirmations.
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Scoring & Ranking: On every incoming tick, all 12 structural patterns are scored against current price action relative to Average True Range (ATR) volatility scaling.
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Signal Generation: When the highest-ranked pattern passes both the Strong Match Threshold and strict pattern-confirmation logic, a buy or sell signal is rendered at the bar close.
Recommended Strategy & Applications
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Timeframe Alignment: Attach the indicator to lower timeframes (M1–M15) while configuring InpHTF to higher timeframes (H1–D1) for optimal precision.
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Confluence Trading: Use the dynamically generated Invalidation Levels for stop-loss placement and CE 50% / Sweep levels for entry limit orders.
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Market Regimes: Use the HUD to quickly distinguish between expansion cycles (trend continuation) and compression cycles (range breakouts).
