Detecting Three-Candle Crash Spike Mitigation Zones

Summary

The document describes an MT5 indicator for identifying a bearish three-candle pattern in Crash markets. It looks for a strong bearish candle, a bullish middle candle, and another strong bearish candle; the two outer candles are specified as having bodies greater than 70% of their full ranges. The indicator draws a box around the three candles and marks the middle candle’s opening price as a possible return level.

The proposed interpretation is that price may retrace to the origin of a sharp bearish move, where a trader could watch for a reaction or re-entry. The line is removed when price reaches that level, with a shorter line optionally marking the interval to mitigation. The document gives no performance data, entry confirmation, stop placement, or risk controls. Its SMC-based explanation is a trading hypothesis, and the visual pattern alone does not establish that a retracement or profitable reaction will occur.

Key ideas

• The indicator identifies a bearish, three-candle formation with a bullish middle candle.
• The outer bearish candles must each have bodies exceeding 70% of their full ranges.
• A box marks the pattern and a horizontal line marks the middle candle’s open.
• The suggested trade idea is to watch for price to return to the marked level.
• The document provides no tested results or explicit risk-management rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.