This MT5 indicator detects Crash market spike patterns using a specific 3-candle formation:
Red-Green-Red candle pattern (where red candles are strong spikes and the green is a middle retracement).
When the pattern is found, it draws a box around the high/low of those 3 candles.
It also plots a horizontal entry line at the middle candle’s open price.
The line stays active until price returns to that level (mitigation).
Once the entry price is hit (mitigated), the entry line is replaced by a shorter fixed line from the pattern to the mitigation candle.
It works on both historical and real-time candles.
Visually helps identify potential return-to-zone trading opportunities.
Input Name
Description
BoxColor
Color of the zone box (default: Red).
LineColor
Color of the entry line (default: Dodger Blue).
BoxWidth
Thickness of the zone box border.
LineWidth
Thickness of the entry line.
BoxStyle
Style of the box border (solid, dashed, etc.).
LineStyle
Style of the entry line (solid, dashed, etc.).
//==== Input Parameters ====
input color BoxColor = clrRed;
input color LineColor = clrDodgerBlue;
input int BoxWidth = 2;
input int LineWidth = 1;
input ENUM_LINE_STYLE BoxStyle = STYLE_SOLID;
input ENUM_LINE_STYLE LineStyle = STYLE_SOLID
This indicator detects a specific bearish spike formation over 3 candles:
Candle 1:
Bearish (Red candle).
Long wick.
Body must be greater than 70% of the total candle range (i.e., a strong spike).
Candle 2 (Middle):
Bullish (Green candle).
Can be any size; just needs to be positive.
Candle 3:
Bearish again.
Same condition as Candle 1: body > 70% of full range.
When this pattern is found:
It identifies a "supply zone" created by aggressive selling.
A box is drawn around the high and low of the 3 candles.
An entry line is drawn at the open price of the middle (green) candle, expecting price to return.
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Core Idea / Strategy Concept
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This tool is based on the Smart Money Concept (SMC) — particularly the idea of mitigation zones and supply/demand imbalances.
After a strong bearish impulse, price often retraces back to the origin of the move (the middle candle).
The indicator marks that area visually as a “mitigation zone”.
Once price returns to this zone (entry line), it is considered "mitigated", and a trader may look for re-entry or reaction.
It removes the entry line after mitigation to keep the chart clean and optionally draws a shorter line to show mitigation.
Practical Use:
Look for return-to-box trades.
Can be used for sell setups on Crash markets (or Boom with inversion).
Works great in confluence with other indicators (like EMA, OBV, or order block confirmations).