Skip to main content

The Banana Strategy

The Banana Strategy is a price-action continuation method based on identifying an impulse move followed by a controlled pullback, then entering in the direction of the original impulse once the pullback completes.

The core idea: markets move in waves. After a strong directional push (the impulse), price retraces partially (the pullback) before continuing. Banana EA MT5 detects these structures on every closed bar and places an entry in anticipation of the continuation.

The three-phase structure

Impulse ↑
┌────────────┐
│ │ Pullback ↓
│ └──────────┐
│ │ Signal / Entry ↑
│ └──────────────────►
Swing Signal bar
Low (closed bar)
  1. Impulse — A sharp, directional move away from a swing point. The EA validates impulse strength using candle count, efficiency (net vs total range), and ATR comparison.
  2. Pullback — Price retraces back toward the swing in an orderly fashion (limited wick violations, no progressive deep pullback).
  3. Signal bar — The closed bar where the pattern completes. The EA places a pending stop order above the signal high (BUY) or below the signal low (SELL).

Signal families

FamilyPatternsCharacter
BananaB1, B2, B3Momentum / swing continuation
SeedSeed TP, Seed TTPPrecision inside-bar structures

Each family is independently enabled or disabled. By default all three Banana patterns are active and Seed patterns are off.


Entry engine modes

The Entry Engine Mode input selects the detection algorithm:

ModeDescription
Current BananaLatest production Banana engine (recommended default)
Banana Engine 2Second-generation engine variant
Break ReclaimBreak-and-reclaim level signals
Pullback BreakPullback into a broken structure level
AIMS BoxAIMS box breakout entries

For most users, leave this at Current Banana.


How the EA fires a trade

  1. On each bar close the EA evaluates the closed bar against all enabled signal patterns.
  2. A detected pattern passes through the active market filters (EMA stack, ATR, daily range, session gate, etc.).
  3. If all filters pass, the EA places a pending stop order (or market order, if configured) at the signal candle extreme plus the configured buffer pips.
  4. The pending order is held for up to Cancel PO Bars bars (default 8). If price does not trigger it the order is cancelled.
  5. Once triggered, trade management (break-even, partial close, trailing) runs on every tick.

See Banana Patterns, Seed Patterns, and Signal Filters for full detail on each stage.