Marubozu Trading System

Marubozu Trading System — 6-Variant Continuation Pattern with Shadow Classification for MT5 ---MANUAL---

Introductory Pricing: This indicator is offered at introductory pricing that increases based on sales milestones. The current price is $49. After 10 sales, the price increases to $59. After 30 sales, it increases to $69. After 60 sales, the final price of $79 takes effect. All buyers receive the same full-featured indicator regardless of purchase price.

This indicator identifies Marubozu formations by analyzing body size relative to candle range and ATR, classifying shadow proportions into six distinct structural variants, and confirming body dominance relative to the prior candle. The Marubozu represents a session where one side — buyers or sellers — maintained control from open to close with minimal opposition, producing a large body with little or no shadow extension. This structure is interpreted as a continuation signal in the direction of the dominant side.

This indicator detects Marubozu formations on any symbol and timeframe, draws automated Entry/SL/TP trading levels using pending stop orders, and tracks signal performance in real-time. Includes a multi-timeframe scanner monitoring up to 150 symbols across 8 timeframes simultaneously.

Included Tools

Each Marubozu Trading System purchase includes access to the following companion tools at no additional cost:

1. Smart Trend Consensus MT5 — Multi-timeframe trend agreement indicator that combines signals from multiple trend methods to produce a single directional bias per timeframe. Helps filter Marubozu signals by confirming trend alignment before entry. https://www.mql5.com/en/market/product/160553

2. Price Volume Distribution MT5 — Volume profile and price distribution analysis tool that identifies high-activity price zones and value area boundaries on any symbol and timeframe. Useful for confirming whether a Marubozu forms within a meaningful volume zone. https://www.mql5.com/en/market/product/160452

3. Marubozu Trading System EA — Automated signal execution expert advisor that reads the indicator's signal buffers and places trades based on detected Marubozu patterns. (Delivered via MQL5 private message after purchase confirmation.)

How Marubozu Detection Works

The indicator evaluates each completed bar against a structured set of rules using a 5-gate validation system:

1. Body ratio: The candle body must represent a minimum percentage of the total candle range (body/range above 0.65 in Standard mode), confirming that the body dominates the candle structure rather than shadows.
2. Body size relative to ATR: The body must exceed a minimum threshold relative to the 14-period ATR (body/ATR above 0.40 in Standard mode), confirming the candle represents meaningful momentum rather than a small bar in low-volatility conditions.
3. Range significance: The total candle range must exceed a minimum ATR threshold (range/ATR above 0.35 in Standard mode), ensuring the formation represents a significant price movement.
4. Shadow classification: Upper and lower shadow ratios are evaluated against two thresholds — a tight threshold for near-zero shadows (Full variant) and a relaxed threshold for partially-shadowed candles (Closing and Opening variants). This step determines which of the six variants applies. If neither shadow configuration qualifies, the bar is rejected.
5. Relative body size: The candle body must be at least as large as the prior candle body (ratio above 1.00 in Standard mode), confirming relative strength and filtering out small continuation attempts following larger candles.

An additional exhaustion flag is raised when bodyATR exceeds 2.0. This does not reject the signal but marks the pattern as a potential over-extension where continuation probability may be reduced.

6-Variant Classification

The shadow classification gate identifies which of six Marubozu structures the candle represents:

• Full White Marubozu: bullish candle with both shadows at or near zero — open equals low, close equals high
• Closing White Marubozu: bullish candle closing at the high, with a small lower shadow permitted
• Opening White Marubozu: bullish candle opening at the low, with a small upper shadow permitted
• Full Black Marubozu: bearish candle with both shadows at or near zero — open equals high, close equals low
• Closing Black Marubozu: bearish candle closing at the low, with a small upper shadow permitted
• Opening Black Marubozu: bearish candle opening at the high, with a small lower shadow permitted

6-Factor Quality Scoring

Each pattern that passes detection receives a score from 0 to 100 based on six weighted factors:

• Body ratio (weight: 0.30): how completely the body fills the candle range — higher means purer Marubozu structure
• Body/ATR (weight: 0.25): how large the body is relative to recent volatility — larger means stronger momentum
• Relative body (weight: 0.20): how the Marubozu body compares to the prior candle body — larger means more dominant
• Upper shadow ratio (weight: 0.10): how small the upper shadow is — lower shadow means higher score (inverted factor)
• Lower shadow ratio (weight: 0.10): how small the lower shadow is — lower shadow means higher score (inverted factor)
• Range/ATR (weight: 0.05): how large the candle range is relative to recent volatility

Two detection presets are available. Standard mode applies relaxed thresholds and passes approximately 15-25% of formations. Strict mode tightens all gates and passes approximately 1-3% of formations, selecting only the most structurally defined continuation candles.

Pattern-Specific Settings

• Detection Preset: Standard, Strict, or Custom
• Min Body/Range: minimum body-to-range ratio to qualify as a Marubozu
• Min Body/ATR: minimum body size as a multiple of ATR to confirm momentum significance
• Min Range/ATR: minimum candle range as a multiple of ATR to confirm significance
• Max Shadow Full: maximum shadow ratio allowed for Full variant classification
• Max Shadow Closing/Opening: maximum shadow ratio allowed for Closing and Opening variant classification
• Min Relative Body: minimum body size relative to the prior candle body
• Entry Buffer: entry offset from pattern extreme as a multiple of ATR
• SL Buffer: stop loss offset from pattern extreme as a multiple of ATR
• Quality Score Minimum: filter signals below a defined score threshold

Automated Trading Levels

Every detected pattern automatically draws Entry, Stop Loss, and up to 4 Take Profit levels (TP1-TP4) directly on the chart. For bullish signals, Entry is a Buy Stop above the Marubozu High; for bearish signals, Entry is a Sell Stop below the Marubozu Low. Stop Loss is placed on the opposite side of the candle with an ATR buffer. Take Profit levels are spaced at 1R, 2R, 3R, and 5R multiples of the SL distance. Stop Loss can be calculated using one of three methods: Donchian Channel (recent price structure), ATR (volatility-based), or Pattern (candle extreme with buffer).

Live Signal Tracking

The indicator tracks each signal from detection through completion. Signal states include: Pending (entry order not yet triggered), Active (trade entered, tracking in progress), TP Hit (one or more take profit levels reached), SL Hit (stop loss triggered), and Expired (signal invalidated without entry). All state transitions are logged in the signal statistics dashboard.

Donchian Channel Trailing Stop

An optional trailing stop system uses the Donchian Channel as a dynamic stop level that moves with price as the trade progresses. For bullish trades, the channel lower band trails upward, locking in profit as price advances. For bearish trades, the upper band trails downward. This trailing method can be used independently or alongside fixed TP levels.

Multi-Timeframe Scanner (150 Symbols x 8 Timeframes)

Monitor patterns across the entire market from a single chart. The scanner checks up to 150 symbols across 8 timeframes simultaneously and displays results in a sortable panel. Each row shows symbol, timeframe, signal direction, quality score, and current signal state. Symbols are loaded from MT5 Market Watch. Scanner updates asynchronously to avoid blocking chart calculations.

Market Structure Analysis (BOS / CHOCH)

Built-in Break of Structure and Change of Character detection identifies key swing points and labels structural shifts on the chart. BOS marks continuation when price breaks a prior swing. CHOCH marks a potential reversal when price breaks structure against the trend. These labels provide context for evaluating whether a Marubozu signal aligns with the prevailing market structure.

Multi-Layer Signal Filtering

Five independent filters can be enabled or disabled individually to control which detected patterns are displayed:

1. Trend filter: only show signals aligned with the higher-timeframe trend direction
2. Volume filter: require above-average volume on the pattern candle to confirm participation
3. Session filter: restrict signals to defined trading sessions (London, New York, Tokyo, Sydney)
4. Volatility filter: exclude signals during extreme or very low volatility conditions
5. Market structure filter: only show signals at confirmed swing points or after structural confirmation

4-Channel Alert System

Never miss a signal. Alerts are delivered through four independent channels: MT5 pop-up notification, MT5 push notification to mobile app, email alert, and sound alert with selectable audio file. Alerts fire at pattern detection and optionally at entry trigger, TP hits, and SL hit.

Signal Statistics Dashboard

A draggable panel displaying real-time performance metrics for signals detected in the current session and historically. Metrics include: total signals detected, entry trigger rate, TP1/TP2/TP3/TP4 hit rates, SL hit rate, average quality score, and win rate by timeframe. The dashboard updates automatically as signal states change.

Professional Chart Themes

Built-in color schemes allow switching the indicator's visual style to match different chart backgrounds. Available themes include Dark, Light, and Minimal. Each theme adjusts the color palette for pattern markers, trading level lines, scanner panel, and dashboard text. Custom color overrides are available through the inputs panel.

EA Signal Buffers

Indicator outputs are available as data buffers for Expert Advisors. Buffer 0 outputs the signal direction at the bar where a pattern is confirmed. Buffer 1 outputs the quality score. Buffer 2 outputs the Entry price. Buffer 3 outputs the Stop Loss price. Buffers 4 through 7 output TP1 through TP4 prices. An EA can read these buffers using iCustom() to build automated strategies without modifying the indicator source.

Recommendations

Timeframes: H1 and H4 provide the most consistent Marubozu frequency with reliable structural significance. M15 and M30 produce more signals with slightly higher noise; D1 produces fewer but structurally cleaner formations suitable for swing trading.

Symbols: The indicator works on any symbol available in MT5 Market Watch. Marubozu formations are commonly observed on Forex major pairs, XAUUSD, and commodity instruments, particularly following breakouts from consolidation zones, after news-driven impulse moves, and at the start of strong trending sessions.

Preset selection: Standard mode is recommended for initial use on XAUUSD H1, producing a balanced volume of signals. Switch to Strict mode when filtering for only the cleanest, highest-conviction continuation candles.

Installation:

1. Copy the indicator file to the MQL5/Indicators directory in the MT5 data folder.
2. Restart MetaTrader 5 or refresh the Navigator panel.
3. Locate Marubozu Trading System under Custom Indicators in the Navigator.
4. Drag the indicator onto a chart and configure inputs as needed.
5. For the scanner, attach the indicator to a single chart; it will monitor all configured symbols automatically.

Notes:

• No repainting: signals are confirmed only on bar close and do not change after detection.
• Bar-close processing only: the indicator evaluates each bar once at close, following R-46 per-bar processing standards.
• Scanner operates asynchronously and updates in the background without affecting chart rendering performance.
• Memory usage is optimized for long-running sessions; object pooling is used for all chart drawings.

Documentation and User Guides

Detailed guides for each feature are available on the MQL5 Blog:

• Installation and Quick Start: [LINK]
• Signal Types, States, and Lifecycle: [LINK]
• Detection Logic and Quality Scoring Explained: [LINK]
• 6-Variant Classification Guide: [LINK]
• Automated Trading Levels Setup: [LINK]
• Multi-Timeframe Scanner Configuration: [LINK]
• Market Structure (BOS/CHOCH) Integration: [LINK]
• Signal Filtering Options: [LINK]
• EA Signal Buffers and iCustom() Usage: [LINK]
• Donchian Channel Trailing Stop Guide: [LINK]
• Alert System Setup: [LINK]

Support

• Product comments section on this page
• Direct message to the author via MQL5: https://www.mql5.com/en/users/khiemni/seller
• Response time: within 24 hours