Mikahekin System is a free MT5 chart-window indicator that turns raw candles into a smoothed, cloud-style trend display: a shaded band, a set of colored “signal” bodies, two trailing stop lines, and a layer of highlighted breakout candles, all built from the same smoothing engine. It’s an instant download for anyone who wants a calmer, filtered read of price action than the underlying candles give on their own.

The Smoothing Engine Behind the Cloud

Every bar, the indicator first finds the highest high and lowest low over the last KPeriod bars (default 3) using ArrayMaximum/ArrayMinimum. Rather than using those values directly, it feeds them into a small rotating buffer (managed by an internal Recount_ArrayZeroPos routine) that keeps track of the last JPeriod (default 7) of those K-period extremes. It then averages that rolling set of highs and lows, and separately averages the last JPeriod raw opens and closes. The result is a smoothed OHLC set: the averaged open and close form a synthetic “signal” candle body, and the averaged highs/lows form the Upper and Lower bands of the lavender cloud.

The signal body (plotted as a colored histogram) turns green when the smoothed close sits above the smoothed open, red when it’s below, and gray when they’re equal — effectively a smoothed Heiken-Ashi-style candle without the usual Heiken-Ashi formula. The same Upper/Lower averages are reused a second time as the “Buy StopLoss” and “Sell StopLoss” lines, so the cloud boundary and the stop-loss reference lines are literally the same smoothed high/low band, just plotted with different styling.

On top of all that, a fifth plot draws colored candles only on bars where the close breaks above the smoothed Upper band or below the smoothed Lower band — the same breakout-highlighting approach used in this developer’s other “System” indicators, giving you a quick visual flag for moves that have outrun the smoothed channel.

How to Read It

• Cloud direction and width — a rising, narrowing cloud generally reflects a steadier uptrend in the smoothed data; a wide, choppy cloud reflects noisy or transitional price action.
• Signal body color — green/red signal bars give you the smoothed trend bias without the noise of raw candle wicks.
• StopLoss lines — since these track the same smoothed Upper/Lower band as the cloud, they can be used as a visual trailing-stop reference rather than a hard, independently-calculated stop level.
• Highlighted BARS candles — appear only when price closes outside the smoothed band, flagging a potential breakout from the cloud.

Input Parameters (Actual Defaults From the Code)

• KPeriod = 3 — the short lookback used to find the highest high / lowest low that feeds into the smoothing.
• JPeriod = 7 — the number of those K-period extremes (plus raw opens/closes) that get averaged together to build the smoothed cloud, signal body, and stop lines. Larger JPeriod values produce a smoother, slower-reacting cloud.
• Shift = 1 — shifts the cloud, stop-loss lines, and highlighted candles horizontally by this many bars; it also affects which historical band value the breakout check compares the current close against, since the code checks close[bar] against UpBuffer[bar+Shift].

Where This Fits in a Trading Plan

Because the cloud, signal body, and stop lines are all derived from the same underlying smoothed high/low averages, Mikahekin System works best as a single, internally-consistent read of trend bias rather than a toolkit of independent confirmations — treat the cloud direction, the signal body color, and the stop-loss lines as three views of one calculation, not three separate votes. That makes it well suited to traders who want one clean overlay to sit on top of raw candles, rather than stacking several unrelated indicators that might disagree with each other. The highlighted BARS candles are the closest thing to a standalone trigger here, since they only fire when price has actually closed outside the smoothed band rather than merely approaching it, which is worth keeping in mind if you’re looking for an earlier, more aggressive entry point instead.

Honest Limitations

Because KPeriod and JPeriod compound (the indicator effectively averages J sets of K-bar extremes), the default 3/7 combination is already a meaningfully lagging construction compared to reading raw candles — don’t expect it to mark tops and bottoms in real time. The internal rotating buffer used for the Highest/Lowest smoothing relies on a small piece of static state that only advances on fully-processed bars, which keeps historical values stable but also means the first several bars after the indicator loads are used purely for warm-up and won’t display the cloud, signal, or stop lines. There is also no separate trend-strength or volatility filter built in, so the breakout candle highlighting will fire on both genuine trend extensions and short-lived spikes equally; you’ll want to pair it with your own confirmation before treating a highlighted candle as an entry signal on its own. Finally, because the code does not expose an ATR or points-based minimum distance as an input, the cloud can appear extremely tight during low-volatility sessions, which is worth remembering before reading a narrow cloud as a strong directional signal on its own.