Three Inside Trading System

Three Inside Trading System for MetaTrader 5

Three Inside Trading System is a price action indicator for MT5 designed to detect 3-candle harami reversal patterns where a large mother candle is followed by a smaller inside candle and then a confirmation candle that validates the direction change.

Overview

Three Inside Trading System detects both Three Inside Up and Three Inside Down formations using a large directional mother candle, a smaller inside candle contained within the mother body, and a third candle that confirms the reversal.

This pattern can be used to identify a pause in momentum followed by a confirmed directional breakout.

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 three-bar pattern through several structural conditions.

These conditions can include:

Minimum body ratio on the mother candle

Minimum range of the mother candle relative to ATR

Full containment of the inside candle body within the mother body

Maximum inside candle size relative to the mother candle body

Minimum body ratio on the confirmation candle

Confirmation close beyond the mother candle open

The indicator can detect both bullish and bearish harami reversal 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:

Mother body strength

Containment tightness

Confirmation strength

Breakout depth

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

Entry and trade planning

For confirmed setups, the indicator can project breakout levels above the pattern high for buy setups or below the pattern low for sell setups, with an ATR buffer.

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 Quality Filter, Extreme Zone Filter, Direction Filter, Stop Hunt Filter, Signal Zone Filter, Spacing 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 H4 and D1 because Three Inside patterns tend to be more meaningful on higher timeframes where harami reversals carry more weight.

The indicator can be applied to Forex pairs, XAUUSD, indices, and crypto symbols, depending on broker data quality and symbol characteristics.

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.