PART Part Description 1 INTRODUCTION Product introduction, what the product helps you with    2 INSTALLATION & SETUP System necessities, step-by-step set up information Information to Putting in Free Indicators and EAs Included with the Mirage Buying and selling System Buy 3 INTERFACE DISPLAY Clarification of the elements displayed on the chart  Consumer Information: Buying and selling Strains & Sign Monitoring System The system routinely attracts Entry, Cease Loss, and Take Revenue traces (TP 1–4) on the chart, tracks value motion for hits, data Win/Loss outcomes, and shows real-time efficiency statistics.  Consumer Information : Visualization, Zone Fill, Sign Dashboard & Cancelled Alerts  Once you connect an indicator to a chart, the system renders the next visible elements for every detected sign Consumer Information: MTF SCAN & Dashboard Consumer Information MTF SCAN routinely scans all Market Watch symbols throughout 8 timeframes (M1 to W1) and shows outcomes on a Dashboard grid immediately in your chart.  Consumer Information : Chart Theme Consumer Information  Chart Theme is a function that adjustments your complete chart shade scheme in MetaTrader 5 — together with the background, candles, grid, textual content, and Bid/Ask traces — with a single click on. 4 CORE CONCEPTS Basic ideas that the system is constructed upon  Consumer Information: Market Construction Performance within the Buying and selling System Identifies pattern path (Uptrend, Downtrend, Ranging) by analyzing swing highs/lows, and detects key occasions: BOS (pattern continuation) and CHoCH (potential pattern reversal). Consumer Information : Sign Sorts, States, and Lifecycle A sign is the system’s notification when it detects a qualifying candlestick sample on the chart. Every sign tells you the anticipated value path and gives recommended entry, cease loss, and take revenue ranges. 5 SIGNAL FILTERS Filters that refine and validate buying and selling indicators  Consumer Information: Commerce Path (Path Filter) within the Buying and selling System Defines the allowed buying and selling path (Purchase solely, Promote solely, each, or neither) as the primary filter earlier than looking for entry indicators, primarily based on present market pattern.  Consumer Information: Sign Zone Filter within the Buying and selling System Eliminates indicators not close to vital value zones, retaining solely these linked to market buildings (swing excessive/low, BOS, CHoCH) to scale back noise.  Consumer Information: StoplossHunt Filter Consumer Information — Filtering “SL Sweep” Alerts Identifies higher-probability indicators by checking whether or not value “swept stoploss” earlier than forming a sample.   Consumer Information : Excessive Zone Filter Excessive Zone Filter is a sign filtering function that helps keep away from getting into trades when value is on the high or backside of a Donchian value channel.  Consumer Information: Reverse Sign Filter The Reverse Sign Filter is an automated function that forestalls new indicators from showing when you have already got an energetic commerce operating in the other way.The precept may be very easy: Do not buy if you’re promoting. Do not promote if you’re shopping for.  Consumer Information : High quality Filter Consumer Information  High quality Filter is a function that helps you obtain solely one of the best indicators — value patterns shaped clearly, with balanced proportions and excessive reliability — and reject weak indicators, boring patterns, and people beneath normal.  6  TRADE MANAGEMENT   Consumer Information : Danger/Reward & SL Technique Consumer Information Danger/Reward (R:R) is the ratio between the amount of cash you settle for dropping (Danger) and the amount of cash you anticipate to realize (Reward) in a single commerce.  Consumer Information: Trailing Cease Loss (TSL) Consumer Information Common Cease Loss (SL) stays fastened in a single place. You set SL at 1990.00, and it stays there endlessly — even when value has risen to 2030.00.Trailing Cease Loss (TSL) is completely different. It routinely strikes in your favor when value advances. As value strikes up, TSL strikes up with it. When value stalls or reverses, TSL holds one of the best place it reached. 7 CONFIGURATION PARAMETERS GUIDE Detailed information to every configuration parameter   SIGNAL SCANNING CONFIGURATION GUIDE – MIRAGE TRADING SYSTEM EA  Information to mastering sign scanning settings inside the Inputs tab, optimizing commerce discovery on a single chart or throughout your complete market.  8  ALERTS & NOTIFICATIONS    Consumer Information: Alerts & Notifications Consumer Information  Configure push notifications, and on-screen popups when new indicators are detected.  9 SYSTEM RISKS & LIMITATIONS  Notes on system dangers and limitations
1. INTRODUCTION
Engulfing Buying and selling SystemÂ
2-Bar Energy Reversal — Full Physique Engulfment Detection
Writer: Ich Khiem Nguyen |Â MQL5:Â https://www.mql5.com/en/customers/khiemni/vendor
What’s Engulfing Buying and selling System?
Engulfing Buying and selling System helps you notice Bullish and Bearish Engulfing patterns in your MetaTrader 5 charts — routinely. The indicator scans each candle, filters out weak setups, and exhibits you solely one of the best buying and selling alternatives with clear entry factors, cease losses, and revenue targets already calculated. It really works on any market and any timeframe, supplying you with extra time to focus in your buying and selling choices as an alternative of looking for patterns.
What Are Engulfing Patterns?
Engulfing patterns are highly effective 2-bar reversal patterns that seem when market momentum shifts dramatically from one path to the opposite. The defining attribute is that the second candle’s physique utterly wraps round (engulfs) the primary candle’s physique — a visible show of 1 facet overwhelming the opposite.
Bullish Engulfing (Bullish Reversal)
A Bullish Engulfing seems on the backside of a downtrend. The primary candle (setup) is a bearish candle exhibiting sellers are nonetheless pushing value down. Then the second candle (engulfing) opens beneath the setup candle’s shut and closes above the setup candle’s open — its physique utterly wraps the primary candle’s physique. This dramatic shift exhibits consumers have taken over with pressure, signaling a possible pattern reversal upward.
Bearish Engulfing (Bearish Reversal)
A Bearish Engulfing seems on the high of an uptrend. The primary candle (setup) is a bullish candle exhibiting consumers are nonetheless pushing value up. Then the second candle (engulfing) opens above the setup candle’s shut and closes beneath the setup candle’s open — utterly wrapping the primary candle’s physique. This exhibits sellers have overwhelmed consumers in a single session, signaling a possible pattern reversal downward.
Once you see these patterns forming close to vital assist or resistance ranges, they grow to be much more dependable indicators for potential pattern reversals.
How the Indicator Finds Patterns
The indicator scans your charts in real-time and checks every potential sample in opposition to a number of high quality necessities:
Checks that each candles have significant our bodies (not doji or spinning tops) to verify decisive market participation Verifies the engulfing candle’s physique utterly wraps the setup candle’s physique — opening past one excessive and shutting past the opposite Measures the engulfing candle’s energy relative to current volatility (ATR) to filter out insignificant strikes Optionally checks for pattern context utilizing a easy shifting common to verify the sample seems after a directional transfer
Solely patterns that cross all these checks seem in your chart, so you do not waste time on weak or invalid setups.
High quality Rating — How Good Is the Sample?
Each sample will get a top quality rating from 0% to 100%, like a grade on a take a look at. This helps you concentrate on one of the best buying and selling alternatives.
What the Rating Means
The indicator evaluates 4 key components to grade every Engulfing sample. How a lot bigger is the engulfing physique in comparison with the setup physique? How sturdy is the engulfing candle relative to current volatility? The place did the engulfing candle shut inside its vary? And does the sample seem in a significant pattern context? Patterns with bigger engulfing ratios, sturdy momentum, and clear pattern context obtain larger scores.
Grade Rating Vary High quality Stage A 80-100% Glorious — Finest indicators B 60-79% Good — Dependable setups C 40-59% Common — Wants affirmation D 20-39% Under Common — Dangerous F 0-19% Poor — Keep away from
High quality Threshold Setting
By default, the indicator solely exhibits patterns scoring 30% or larger. You possibly can regulate this within the settings:
Elevate to 50-60%: See solely one of the best indicators (fewer however larger high quality) Decrease to 15-20%: See extra indicators (extra frequent however combined high quality) Tip: Begin with the default 30% and regulate primarily based in your backtest outcomes
What You See on the Chart
When the indicator detects an Engulfing sample, it attracts every little thing it’s good to know immediately on the chart:
Sign Markers
Arrow icons: A inexperienced upward arrow seems beneath bullish engulfing patterns; a pink downward arrow seems above bearish engulfing patterns High quality labels: The standard rating proportion (e.g., “78%”) is displayed subsequent to every sign arrow
Buying and selling Strains
Entry line: A blue horizontal line on the engulfing candle’s excessive (bullish) or low (bearish), or on the shut value in aggressive mode Cease Loss line: A pink horizontal line beneath the sample low (bullish) or above the sample excessive (bearish), with pip distance label Take Revenue traces: As much as 4 inexperienced traces (TP1-TP4) at configurable R:R ratios, every with pip distance and R:R labels
Visible Zones
Sample spotlight: A shaded rectangle covers the sample space, inexperienced for bullish and pink for bearish setups Monitoring dots: Small dots hint the value path after a sign is detected, altering shade because the sign progresses via its lifecycle
Sign Lifecycle
Alerts progress via completely different states, proven by altering colours and monitoring dots:
Pending: Sample simply detected, ready for entry affirmation Triggered: Entry value reached, commerce is energetic Goal Hit: Value reached take revenue degree (sign turns inexperienced) Cease Hit: Value hit cease loss (sign turns pink) Cancelled: Sign invalidated earlier than entry (sign disappears or grays out)
You possibly can watch your indicators evolve in real-time with out opening any menus or panels.
Settings You Can Regulate
Listed below are the primary settings that management how the indicator finds and shows Engulfing patterns:
Setting What It Does Default When to Change It ATR Interval for volatility Controls what number of bars are used to measure market volatility 14 Hardly ever wants altering; decrease for faster-moving markets Max Bars to Scan (historical past depth) How far again in historical past to search for patterns 3000 Enhance to see extra historic indicators, lower for quicker loading Min Bars Between Patterns Minimal hole between consecutive indicators 3 Enhance if indicators cluster too shut collectively Min Physique/Vary (each bars, filter doji 0.20=20%) Minimal physique dimension relative to candle vary for each candles 0.20 Decrease to just accept extra doji-like candles, elevate to require stronger our bodies Min Engulfing Physique/ATR (significance, 0.30=normal) How massive the engulfing physique have to be relative to ATR 0.30 Elevate for stronger indicators solely, decrease if indicators are too uncommon Min Setup Physique/ATR (0.15=relaxed) Minimal setup candle physique dimension relative to ATR 0.15 Elevate to require bigger setup candles, decrease for extra indicators Require Development Bars Earlier than Sample (0=disable) Variety of same-direction bars required earlier than the sample 0 Set to 2-3 to require clear pattern context earlier than patterns Entry Mode Aggressive (enter at shut) or Conservative (enter at breakout) Conservative Use Aggressive for earlier entries, Conservative for affirmation Entry Buffer (xATR, conservative breakout) Buffer added to entry value in conservative mode 0.05 Enhance for wider entry buffer, lower for tighter entries SL Buffer (xATR above/beneath sample) Further house added to cease loss past sample excessive 0.10 Enhance in unstable markets, lower for tighter stops Development SMA Interval (0=disable) SMA interval for pattern path filter 0 Set to 20-50 to solely present patterns aligned with SMA pattern Min High quality (0.0-1.0, 0.30=relaxed) Minimal high quality rating threshold to show a sign 0.30 Elevate to see fewer however larger high quality indicators
Settings Suggestions
Begin with all default settings and let the indicator run for just a few days to see the way it performs The Entry Mode setting is exclusive to this indicator — strive Conservative first for safer entries with breakout affirmation For those who get too many indicators, elevate the standard threshold to 50% or allow the pattern filter (set Development SMA Interval to twenty) All the time backtest any setting adjustments earlier than utilizing them on a stay account
Finest Timeframes and Markets
Really helpful Timeframes
Timeframe Sign High quality Sign Frequency Finest For M15 Good Excessive Scalping, fast reversals H1 Very Good Reasonable Day buying and selling, intraday swings H4 Glorious Low-Reasonable Swing buying and selling, place entries D1 Glorious Low Swing/place buying and selling, main reversals
Finest Markets
XAUUSD (Gold): Glorious sample readability on H1 and H4 timeframes — engulfing patterns are particularly efficient on gold attributable to its sturdy momentum strikes EURUSD, GBPUSD, USDJPY: Work nicely on all timeframes above M15 — main pairs present clear engulfing formations US30, NAS100: Finest outcomes on H4 and Each day timeframes the place institutional participation creates clear engulfing strikes Cryptocurrency (BTCUSD, ETHUSD): Use H4 or Each day timeframe for clearer indicators — decrease timeframes are usually noisy
The indicator works on any image and timeframe, however these mixtures have a tendency to provide essentially the most dependable indicators.
Getting Began — Fast Setup
Observe these steps to begin utilizing Engulfing Buying and selling System:
Open MetaTrader 5 and cargo your most well-liked chart (we suggest beginning with XAUUSD on H1) Within the Navigator panel (Ctrl+N), increase “Indicators” and discover “Engulfing Buying and selling System” Drag the indicator onto your chart A settings window seems — click on OK to make use of the default settings in your first session Look ahead to sign arrows and buying and selling traces to look because the indicator scans your chart historical past After observing just a few indicators, regulate the High quality Threshold or Entry Mode primarily based in your buying and selling fashion Allow push notifications in Settings > Alerts if you would like cellular alerts for brand new indicators
That is it! The indicator is now scanning your charts routinely and can warn you when high-quality Engulfing patterns seem.
All Options at a Look
Sample-Particular Options
✓ Full physique engulfment detection with automated bullish/bearish classification ✓ 4-factor weighted high quality scoring: engulf ratio, physique/ATR, shut place, pattern context ✓ Twin entry mode system: Conservative (breakout) or Aggressive (shut) with configurable buffer ✓ Sample-adaptive cease loss placement at sample excessive with ATR buffer ✓ Optionally available pattern filter by way of SMA to align indicators with prevailing pattern path
The next professional-grade options can be found throughout all our indicators:
3 INTERFACE DISPLAY Clarification of the elements displayed on the chart  Consumer Information: Buying and selling Strains & Sign Monitoring System The system routinely attracts Entry, Cease Loss, and Take Revenue traces (TP 1–4) on the chart, tracks value motion for hits, data Win/Loss outcomes, and shows real-time efficiency statistics.  Consumer Information : Visualization, Zone Fill, Sign Dashboard & Cancelled Alerts  Once you connect an indicator to a chart, the system renders the next visible elements for every detected sign Consumer Information: MTF SCAN & Dashboard Consumer Information MTF SCAN routinely scans all Market Watch symbols throughout 8 timeframes (M1 to W1) and shows outcomes on a Dashboard grid immediately in your chart.  Consumer Information : Chart Theme Consumer Information  Chart Theme is a function that adjustments your complete chart shade scheme in MetaTrader 5 — together with the background, candles, grid, textual content, and Bid/Ask traces — with a single click on. 4 CORE CONCEPTS Basic ideas that the system is constructed upon  Consumer Information: Market Construction Performance within the Buying and selling System Identifies pattern path (Uptrend, Downtrend, Ranging) by analyzing swing highs/lows, and detects key occasions: BOS (pattern continuation) and CHoCH (potential pattern reversal). Consumer Information : Sign Sorts, States, and Lifecycle A sign is the system’s notification when it detects a qualifying candlestick sample on the chart. Every sign tells you the anticipated value path and gives recommended entry, cease loss, and take revenue ranges. 5 SIGNAL FILTERS Filters that refine and validate buying and selling indicators  Consumer Information: Commerce Path (Path Filter) within the Buying and selling System Defines the allowed buying and selling path (Purchase solely, Promote solely, each, or neither) as the primary filter earlier than looking for entry indicators, primarily based on present market pattern.  Consumer Information: Sign Zone Filter within the Buying and selling System Eliminates indicators not close to vital value zones, retaining solely these linked to market buildings (swing excessive/low, BOS, CHoCH) to scale back noise.  Consumer Information: StoplossHunt Filter Consumer Information — Filtering “SL Sweep” Alerts Identifies higher-probability indicators by checking whether or not value “swept stoploss” earlier than forming a sample.   Consumer Information : Excessive Zone Filter Excessive Zone Filter is a sign filtering function that helps keep away from getting into trades when value is on the high or backside of a Donchian value channel.  Consumer Information: Reverse Sign Filter The Reverse Sign Filter is an automated function that forestalls new indicators from showing when you have already got an energetic commerce operating in the other way.The precept may be very easy: Do not buy if you’re promoting. Do not promote if you’re shopping for.  Consumer Information : High quality Filter Consumer Information  High quality Filter is a function that helps you obtain solely one of the best indicators — value patterns shaped clearly, with balanced proportions and excessive reliability — and reject weak indicators, boring patterns, and people beneath normal.  6  TRADE MANAGEMENT   Consumer Information : Danger/Reward & SL Technique Consumer Information Danger/Reward (R:R) is the ratio between the amount of cash you settle for dropping (Danger) and the amount of cash you anticipate to realize (Reward) in a single commerce.  Consumer Information: Trailing Cease Loss (TSL) Consumer Information Common Cease Loss (SL) stays fastened in a single place. You set SL at 1990.00, and it stays there endlessly — even when value has risen to 2030.00.Trailing Cease Loss (TSL) is completely different. It routinely strikes in your favor when value advances. As value strikes up, TSL strikes up with it. When value stalls or reverses, TSL holds one of the best place it reached. 7 CONFIGURATION PARAMETERS GUIDE Detailed information to every configuration parameter   SIGNAL SCANNING CONFIGURATION GUIDE – MIRAGE TRADING SYSTEM EA  Information to mastering sign scanning settings inside the Inputs tab, optimizing commerce discovery on a single chart or throughout your complete market.  8  ALERTS & NOTIFICATIONS    Consumer Information: Alerts & Notifications Consumer Information  Configure push notifications, and on-screen popups when new indicators are detected.
Widespread Questions
Q: Why does the cease loss appear broad on some indicators?
The indicator locations the cease loss past the sample’s excessive (low for bullish, excessive for bearish) plus an ATR buffer. Large-range engulfing patterns naturally produce wider stops. You possibly can swap the SL Technique to Donchian Channel for structure-based stops, or scale back the SL Buffer setting for tighter placement — however remember this may occasionally enhance false stop-outs.
Q: What is the distinction between Conservative and Aggressive entry mode?
Conservative mode locations a pending order on the engulfing candle’s excessive (bullish) or low (bearish) plus a small ATR buffer — you solely enter if value confirms the path. Aggressive mode enters on the engulfing candle’s shut value, supplying you with earlier positioning however with out breakout affirmation. Begin with Conservative in the event you want safer entries.
Q: How do I scale back the variety of indicators?
Three choices: (1) Elevate the Min High quality threshold from 0.30 to 0.50 or larger. (2) Set Require Development Bars to 2-3 so patterns should seem after a transparent pattern. (3) Allow the Development SMA filter (set interval to twenty) to solely present indicators aligned with the shifting common path.
Q: How is Engulfing completely different from the Darkish Cloud / Piercing sample?
Engulfing requires the second candle’s physique to utterly wrap the primary candle’s physique — opening past and shutting past each extremes. Darkish Cloud and Piercing solely require the second candle to penetrate previous the midpoint of the primary candle. Engulfing is usually thought of a stronger reversal sign due to the entire physique engulfment.
Q: Can I take advantage of this indicator with an Skilled Advisor?
Sure. The indicator exposes 10 sign buffers (Path, Entry, SL, TP1-4, High quality, Sign ID) that any EA can learn by way of iCustom(). See the EA Sign Buffers consumer information for connection particulars and a ready-to-use EA template.
What’s New — Model 1.00
That is the v1.00 launch of Engulfing Buying and selling System. Key options embody:
Computerized Bullish and Bearish Engulfing sample detection on all timeframes 4-factor weighted high quality scoring (engulf ratio, physique/ATR, shut place, pattern context) Twin entry mode: Conservative (breakout affirmation) and Aggressive (candle shut) 7-layer sign filter chain (high quality, excessive zone, path, SL hunt, sign zone, spacing, reverse) Multi-timeframe scanner monitoring as much as 150 symbols throughout 8 timeframes Donchian Channel trailing cease with breakeven lock and dynamic adjustment 4-channel alert system (popup, sound, push, e mail) with anti-spam safety Market construction evaluation with BOS/CHOCH detection and swing labeling 4 chart themes (Darkish Muted, Darkish, Mild, Customized) 10 EA sign buffers for algorithmic buying and selling integration
Getting Assist
You probably have questions or want assist:
I am dedicated to serving to you get essentially the most out of this indicator.
Able to Begin?
Engulfing Buying and selling System is designed to avoid wasting you time and enable you discover high-probability Engulfing patterns routinely. Connect the indicator to your chart and begin with the default settings — you may fine-tune every little thing later as you get snug with the way it works.
Pleased buying and selling!
Ich Khiem Nguyen
Engulfing Buying and selling System v1.00 — Created February 2026
