Separating Lines Trading System

Separating Lines Trading System for MetaTrader 5

Separating Lines Trading System is a price action indicator for MT5 designed to detect 2-bar continuation patterns where both candles share the same opening level and the second candle resumes the prevailing trend.

Overview

Separating Lines Trading System detects two-candle continuation structures in which a countertrend setup candle is followed by a trend-resuming signal candle that opens at the same price as the setup candle.

This pattern can be used to identify trend continuation after a temporary pullback returns to a key reference level and then resumes directional pressure.

All calculations are based on completed bars only.

Detection is non-repainting. Signal values do not change after the bar is closed.

The indicator can draw Entry, Stop Loss, and Take Profit levels directly on the chart and track signal progress after detection.

Detection Logic

The detection model evaluates each completed two-bar pattern through several structural conditions.

These conditions can include:

Setup candle moving against the prevailing trend

Open match between the setup candle and signal candle within an ATR-based tolerance

A strong signal candle that closes in the direction of the prevailing trend

Minimum body size requirements for both candles

Prior trend context before the pattern forms

The indicator can detect both bullish and bearish Separating Lines structures.

Patterns that do not meet the selected structural requirements are ignored.

Quality Evaluation

Each valid pattern can be evaluated through a multi-factor quality model.

The scoring process can include measurements such as:

Open match precision

Signal candle body size relative to ATR

Prior trend context

Setup candle body size relative to ATR

Signal candle close position

Signals below the selected minimum threshold can be filtered out automatically.

Entry and trade planning

For confirmed setups, the indicator can project immediate entry levels at the signal candle close.

For each valid setup, the indicator can display:

Entry level

Stop Loss level

Up to four Take Profit levels

Risk and reward zones on the chart

Stop Loss can be calculated using pattern-based placement, Donchian Channel logic, or ATR-based logic.

An optional trailing stop based on Donchian logic is also available for users who want dynamic trade management after entry.

Filters and tools

Optional filters are available to reduce unnecessary signals.

These include Direction Filter, Extreme Zone Filter, Stop Hunt Filter, Signal Zone Filter, and Opposite Signal Filter.

The built-in scanner can monitor up to 150 symbols across 8 timeframes from a single chart.

The indicator also includes BOS and CHOCH labels, a signal dashboard, alert options, chart themes, and output buffers for Expert Advisor integration.

Recommended use

Recommended timeframes are H1, H4, and D1 because continuation patterns are generally more reliable when the trend structure is clearer.

The indicator can be applied to Forex pairs, XAUUSD, indices, crypto pairs, and stocks, with the best results typically appearing in markets that sustain directional trends.

Loading sufficient chart history is recommended for more stable structure analysis.

MetaTrader 5 only.

No DLL calls.

No external WebRequest connections.

Important notes

This indicator is a technical analysis tool.

It does not guarantee trading results.

Users should test settings in their own environment and apply appropriate risk management.

Support is available through the product comments section or via MQL5 direct message.