All-day traders who use indicators for manual trading will benefit from using this indicator as it can be used on different timeframes and is perfect with currency pairs (Forex) to help identify trend continuation or breakouts. This indicator will inform the trader the moment there is a break-out with a popup window and an audible alert.
It measures the price volatility or explosion with the help of a difference between upper and lower Bollinger bands, this is also known as the squeeze that uses a slow MACD advance or decline weighted with a coefficient sensitivity of 150 as shown in the settings.
A major advantage of using the Waddah Attar Explosion indicator is that it can help traders identify the periods in the price when a strong move is starting to happen, these moves can be bullish or bearish and even against the current trend direction. Trader's can take advantage of these signals by entering a trade in the direction of the price breakout as soon as the popup window informs them.
How to Use This Indicator
The Waddah Attar indicator is very easy to use by all traders with different experience levels, the image below shows examples of both a bullish, bearish explosive trend and also when there is a dead-zone of no trend direction. This indicator is also very useful for identifying periods when the price is neither bullish nor bearish, but instead simply ranging with no real direction.
A trader that Trades a range requires a particular set of skills that most traders do not have, so it is advised that they should avoid trading ranges as much as possible during the trading day.
Bullish Buy Signal
- Progressively longer green bars.
- The explosive yellow line is rising above the white (dead zone).
- Both green bars and the explosive line above the dead zone line.
Exit Buy Signal
- Exit when the green bar has crossed below Explosion line.
Bearish Sell Signal
- Progressively longer red bars.
- The explosive yellow line is risingabove the white (dead zone).
- Both red bars and the explosive line above the dead zone line.
Exit Sell Signal
- Exit when the red bar has crossed below Explosion line.
Stuck in a Range
- Short red and green bars.
- No movement up or down of the explosive yellow line.
We have tried our best to research the internet to get the true meaning of the indicator settings shown below, if you feel that they are incorrect or could be improved, please drop us an email.
TimeFrame: The author suggests using this indicator on 30mins.
These settings will give weight to any signal generated, you can turn this off to get signals for the standard conditions for this indicator or you can turn it on to only trade when both the explosion line and the trend bars show a strong movement, you will need to experiment with different values for different instruments.
Dead-Zone Level Explained
This is a very important level as it helps to filter out signals when the price is stuck in a RANGE with no real direction, it is important to set the dead zone pips so that the line is above the yellow explosion line where you see historical ranges in the price as shown below, by doing this you will prevent false signals to enter or exit a trade.
Dead Zone & Timeframes
The dead-zone level is very important as it is the threshold for signals, as it uses the number of pips above the baseline (zero) when you use a low timeframe like 1-min the dead zone line will be very high up where a 1-hour or more timeframe shows it near the baseline of zero.
Instant Telegram Alerts
A useful feature included with this indicator is the ability to receive instant Telegram alerts when a signal is generated, if you are new to Telegram then you can use our Free Telegram testing and configuration tool to help you get started, you can find it below.
When there is a signal to enter a trade an arrow icon is displayed on the chart by the closed candle.
Manual Trade Setup Using a Trend Surfing Indicator
The trade setup shown below uses the ClickAlgo Trend Surfing Indicator for an extra confirmation before entering a trade.
Watch a Video Explainer
We have recorded a hands-on tutorial on how to use the indicator.
Duration: 10-minutes - Watch full screen on YouTube
How To Install & Open Indicator's
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install onto the platform.
* Manual trading only - source code not available.