Waddah Attar Explosion Indicator
The Waddah Attar Explosion indicator is a technical indicator that gives buy, sell and exit signals. The MT5 trading terminal shows the direction of the breakout of the transaction.
Description
The Waddah Attar Explosion Indicator for MT5 is a trend following indicator that shows the strength of the trend and the power of the explosion (momentum). It shows the direction of the trend by changing the colors of the histogram. When the trend is up, it changes color to green and red bars indicate a bearish trend move. The indicator also draws an explosion signal line that acts as a momentum threshold. You can use the indicator to trade any currency pair on all timeframes.
How to Use the Waddah Attar Explosion Indicator
Using the Waddah Attar Explosion Indicator for MT5 – Free Download – is quite simple. Just check the color of the histogram to determine the direction of the trend and the threshold signal line to determine the momentum of the trend.
Buy Signal Setup
- Buy trade is signaled by progressive long green histograms
- Enter the trade when the histogram crosses the threshold line
- Set the stop loss below the entry candle
- Exit when the histograms change color from blue to red
Sell Signal
- A downtrend signal occurs when the indicator forms progressive long red histograms.
- Enter a short position when the red histograms cross the threshold signal line
- Place the stop loss above the entry candle. Exit when the histogram changes color to green.
During a strong trend, the threshold moves up and down. It is imperative that you stay away from trading if the threshold line is flat and the histograms are below that line.
Chart Example Waddah Attar Explosion Indicator
The chart above shows the price movement for the EURO against the Japanese Yen. During a strong uptrend, the indicator forms long green histograms which break out above the threshold line. Similarly, during a strong downtrend, the indicator forms long red histograms, superseding the threshold line.
The threshold line is flat during a ranging market, and the histogram is below the threshold line, as shown in the chart. This signifies market indecision, and it is prudent to stay away from the market and wait for an opportune time.
Conclusion
Waddah Attar Explosion Indicator is an excellent indicator for providing trade entry signals. Some traders endear it because it provides signals based on a confluence of momentum and trend. That said, you should use it as part of the trading strategy to enhance the analysis of price action and other strategies.