Waddah Attar Explosion Indicator
Waddah Attar Explosion Indicator is a technical indicator that provides buy, sell, and exit signals. The MT4 trading terminal shows the direction of a trade breakout.
Description
Waddah Attar Explosion Indicator for MT4 is a trend following indicator that shows the trend strength and explosion power (momentum). It shows the trend direction by changing the histogram colors. When the trend is upward, it changes color to green, while red bars indicate bearish trend movement. The indicator also draws an explosion signal line which acts as a momentum threshold. You can use the indicator to trade any currency pair on all time frames.
How to Use the Waddah Attar Explosion Indicator
Using the Waddah Attar Explosion indicator for MT4 – Download Free is pretty much straightforward. Simply check the histogram color to identify the trend direction and threshold signal line to determine trend momentum.
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 trade if the threshold line is flat and histograms are below the line.
Chart Example
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