Hey everyone I have modified Waddah Attar Explosion indicator to work in low price markets like crypto as well as any other market. So now the DeadZone line is based on ATR instead of a fixed number. Nothing more changed and all credits goes to it's MT4 developer and LazyBear (Main Script Link). Hope you enjoy!
This is a port of a famous MT4 indicator. This indicator uses MACD/BB to track trend direction and strength. Author suggests using this indicator on 30mins.
Explanation from the indicator developer:
"Various components of the indicator are:
Dead Zone Line: Works as a filter for weak signals. Do not trade when the red or green histogram is below it.
Histograms: - Red histogram shows the current down trend. - Green histogram shows the current up trend. - Sienna line shows the explosion in price up or down.
Signal for ENTER_BUY: All the following conditions must be met. - Green histo is raising. - Green histo above Explosion line. - Explosion line raising. - Both green histo and Explosion line above DeadZone line.
Signal for EXIT_BUY: Exit when green histo crosses below Explosion line.
Signal for ENTER_SELL: All the following conditions must be met. - Red histo is raising. - Red histo above Explosion line. - Explosion line raising. - Both red histo and Explosion line above DeadZone line.
Signal for EXIT_SELL: Exit when red histo crosses below Explosion line.
All of the parameters are configurable via options page. You may have to tune it for your instrument.
I use this for FX, still backtesting. But on the daily charts this works well for me. Thank you for sharing your work.
koklucinar
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Hi there,
Thanks for this first of all. I just kept adjusting the dead zone for every single crypto token. You saved a lot of time for me. (:
Got a couple of questions for you. I'd really appreciate if you have time to look at this.
1- What is the exact definition of the histogram bar colors? Dark red, orange, dark green and light green. I think it has something to do with strength maybe but just needed to be sure.
2- And what would be your suggestion depending on those bar colors, like trade or no-trade, even if we have all the other necessities are met. Let's say for a long position. Green histo rising and above dead zone, explosion line is rising and above dead zone. But the color of the histo is dark green or light green. I just wanted to know what that would mean.
3- What is the exact definition of the little color circles appear under or above the candles. Whites are trend continuation but what should we be looking at when it turns green or purple, which just happens in real-time frequently. Does it signals for anything?
GarethPollock
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Hey Guys anyone got better setting for the daily chart?
visibleLeopard82205
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@GarethPollock, put it on much higher settings than default to make it a really good trend indicator.