Crash Spike Trade Pattern - indicatore per MetaTrader 5

This MT5 indicator detects Crash market spike patterns using a specific 3-candle formation:

• Red-Green-Red candle pattern (where red candles are strong spikes and the green is a middle retracement).

• When the pattern is found, it draws a box around the high/low of those 3 candles.

• It also plots a horizontal entry line at the middle candle’s open price.

• The line stays active until price returns to that level (mitigation).

• Once the entry price is hit (mitigated), the entry line is replaced by a shorter fixed line from the pattern to the mitigation candle.

• It works on both historical and real-time candles.

• Visually helps identify potential return-to-zone trading opportunities.

//==== Input Parameters ====
input color    BoxColor     = clrRed;
input color    LineColor    = clrDodgerBlue;
input int      BoxWidth     = 2;
input int      LineWidth    = 1;
input ENUM_LINE_STYLE BoxStyle = STYLE_SOLID;
input ENUM_LINE_STYLE LineStyle = STYLE_SOLID

This indicator detects a specific bearish spike formation over 3 candles:

1. Candle 1:

   • Bearish (Red candle).

   • Long wick.

   • Body must be greater than 70% of the total candle range (i.e., a strong spike).

2. Candle 2 (Middle):

   • Bullish (Green candle).

   • Can be any size; just needs to be positive.

3. Candle 3:

   • Bearish again.

   • Same condition as Candle 1: body > 70% of full range.

 When this pattern is found:

• It identifies a "supply zone" created by aggressive selling.

• A box is drawn around the high and low of the 3 candles.

• An entry line is drawn at the open price of the middle (green) candle, expecting price to return.

Core Idea / Strategy Concept

This tool is based on the Smart Money Concept (SMC) — particularly the idea of mitigation zones and supply/demand imbalances.

• After a strong bearish impulse, price often retraces back to the origin of the move (the middle candle).

• The indicator marks that area visually as a “mitigation zone”.

• Once price returns to this zone (entry line), it is considered "mitigated", and a trader may look for re-entry or reaction.

• It removes the entry line after mitigation to keep the chart clean and optionally draws a shorter line to show mitigation.

Practical Use:

• Look for return-to-box trades.

• Can be used for sell setups on Crash markets (or Boom with inversion).

• Works great in confluence with other indicators (like EMA, OBV, or order block confirmations).