The Waddah Attar Explosion indicator is a sophisticated market analysis tool designed to help traders identify strong momentum and potential trend reversals by monitoring the "energy" behind price movements. Rather than just showing where the price is, it calculates the intensity of the market's current direction.
Core Logic and Methodology
The script operates by analyzing three distinct components of market behavior simultaneously:
1. Trend Momentum (MACD Analysis) The indicator uses a modified version of the MACD (Moving Average Convergence Divergence) to measure the "speed" of the trend. It looks at the change between the current momentum and previous periods. By magnifying this change based on a sensitivity setting, it helps distinguish between a slow, drifting market and a decisive, aggressive move.
2. Price Expansion (Bollinger Bands) To measure the volatility or "explosion" of the price, the script calculates the width of the Bollinger Bands. It compares the current expansion to the previous bar's expansion. If the bands are widening significantly, it indicates that market participants are pushing the price with increasing force.
3. The Dead Zone (Filtering Noise) To prevent false signals caused by minor market fluctuations or "flat" trading periods, the indicator utilizes a "Dead Zone." This acts as a minimum threshold; unless the momentum and expansion values exceed this specific limit, the script ignores the movement as insignificant noise.
Signal Generation
The logic triggers specific actions based on how these three components interact:
- Buy Signals: Triggered when the trend momentum is positive and rising, the price expansion (explosion) is significantly widening, and both metrics are well above the Dead Zone. It essentially looks for a "breakout" where the market is gaining power rapidly to the upside.
- Sell Signals: Triggered under opposite conditions—where momentum is moving aggressively downward and the price expansion is increasing toward the bottom.
- Exit Signals: The logic also includes specific parameters to identify when a trend is losing its "explosive" energy. It monitors for instances where the momentum begins to flatten or contract compared to previous bars, suggesting that the current move may be exhausting and it might be time to take profits.
User Experience Features
- Visual Feedback: The script plots these values as histograms and lines in a separate window, allowing you to see the "pulse" of the market visually.
- Alert System: The tool can be configured to send real-time notifications (pop-ups or print logs) when specific conditions are met, such as entering a trade or reaching an exit point. It includes internal counters to ensure you aren't overwhelmed by repetitive alerts during a single move.
- Customization: Users can adjust the Sensitivity (how much the trend is magnified), the Explosion Power (the required intensity of the expansion), and the Dead Zone (the noise filter) to suit different currency pairs or timeframes.
Indicators Used
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Waddah_Attar_Explosion1
//+------------------------------------------------------------------+
//| Waddah_Attar_Explosion.mq4 |
//| Copyright © 2006, Eng. Waddah Attar |
//| waddahattar@hotmail.com |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2006, Eng. Waddah Attar"
#property link "waddahattar@hotmail.com"
//----
#property indicator_separate_window
#property indicator_buffers 4
#property indicator_color1 Green
#property indicator_color2 Red
#property indicator_color3 Gold
#property indicator_color4 Aqua
#property indicator_minimum 0.0
//----
extern int Sensetive = 150;
extern int DeadZonePip = 30;
extern int ExplosionPower = 15;
extern int TrendPower = 15;
extern bool AlertWindow = true;
extern int AlertCount = 6;
extern bool AlertLong = true;
extern bool AlertShort = true;
extern bool AlertExitLong = true;
extern bool AlertExitShort = true;
//----
double ind_buffer1[];
double ind_buffer2[];
double ind_buffer3[];
double ind_buffer4[];
//----
int LastTime1 = 1;
int LastTime2 = 1;
int LastTime3 = 1;
int LastTime4 = 1;
int Status = 0, PrevStatus = -1;
double bask, bbid;
//+------------------------------------------------------------------+
//| |
//+------------------------------------------------------------------+
int init()
{
SetIndexStyle(0, DRAW_HISTOGRAM, STYLE_SOLID, 2);
SetIndexStyle(1, DRAW_HISTOGRAM, STYLE_SOLID, 2);
SetIndexStyle(2, DRAW_LINE, STYLE_SOLID, 2);
SetIndexStyle(3, DRAW_LINE, STYLE_DOT, 1);
//----
SetIndexBuffer(0, ind_buffer1);
SetIndexBuffer(1, ind_buffer2);
SetIndexBuffer(2, ind_buffer3);
SetIndexBuffer(3, ind_buffer4);
//----
IndicatorShortName("Waddah Attar Explosion: [S(" + Sensetive +
") - DZ(" + DeadZonePip + ") - EP(" + ExplosionPower +
") - TP(" + TrendPower + ")]");
Comment("copyright waddahwttar@hotmail.com");
return(0);
}
//+------------------------------------------------------------------+
//| |
//+------------------------------------------------------------------+
int start()
{
double Trend1, Trend2, Explo1, Explo2, Dead;
double pwrt, pwre;
int limit, i, counted_bars = IndicatorCounted();
//----
if(counted_bars < 0)
return(-1);
//----
if(counted_bars > 0)
counted_bars--;
limit = Bars - counted_bars;
//----
for(i = limit - 1; i >= 0; i--)
{
Trend1 = (iMACD(NULL, 0, 20, 40, 9, PRICE_CLOSE, MODE_MAIN, i) -
iMACD(NULL, 0, 20, 40, 9, PRICE_CLOSE, MODE_MAIN, i + 1))*Sensetive;
Trend2 = (iMACD(NULL, 0, 20, 40, 9, PRICE_CLOSE, MODE_MAIN, i + 2) -
iMACD(NULL, 0, 20, 40, 9, PRICE_CLOSE, MODE_MAIN, i + 3))*Sensetive;
Explo1 = (iBands(NULL, 0, 20, 2, 0, PRICE_CLOSE, MODE_UPPER, i) -
iBands(NULL, 0, 20, 2, 0, PRICE_CLOSE, MODE_LOWER, i));
Explo2 = (iBands(NULL, 0, 20, 2, 0, PRICE_CLOSE, MODE_UPPER, i + 1) -
iBands(NULL, 0, 20, 2, 0, PRICE_CLOSE, MODE_LOWER, i + 1));
Dead = Point * DeadZonePip;
ind_buffer1[i] = 0;
ind_buffer2[i] = 0;
ind_buffer3[i] = 0;
ind_buffer4[i] = 0;
if(Trend1 >= 0)
ind_buffer1[i] = Trend1;
if(Trend1 < 0)
ind_buffer2[i] = (-1*Trend1);
ind_buffer3[i] = Explo1;
ind_buffer4[i] = Dead;
if(i == 0)
{
if(Trend1 > 0 && Trend1 > Explo1 && Trend1 > Dead &&
Explo1 > Dead && Explo1 > Explo2 && Trend1 > Trend2 &&
LastTime1 < AlertCount && AlertLong == true && Ask != bask)
{
pwrt = 100*(Trend1 - Trend2) / Trend1;
pwre = 100*(Explo1 - Explo2) / Explo1;
bask = Ask;
if(pwre >= ExplosionPower && pwrt >= TrendPower)
{
if(AlertWindow == true)
{
Alert(LastTime1, "- ", Symbol(), " - BUY ", " (",
DoubleToStr(bask, Digits) , ") Trend PWR " ,
DoubleToStr(pwrt,0), " - Exp PWR ", DoubleToStr(pwre, 0));
}
else
{
Print(LastTime1, "- ", Symbol(), " - BUY ", " (",
DoubleToStr(bask, Digits), ") Trend PWR ",
DoubleToStr(pwrt, 0), " - Exp PWR ", DoubleToStr(pwre, 0));
}
LastTime1++;
}
Status = 1;
}
if(Trend1 < 0 && MathAbs(Trend1) > Explo1 && MathAbs(Trend1) > Dead &&
Explo1 > Dead && Explo1 > Explo2 && MathAbs(Trend1) > MathAbs(Trend2) &&
LastTime2 < AlertCount && AlertShort == true && Bid != bbid)
{
pwrt = 100*(MathAbs(Trend1) - MathAbs(Trend2)) / MathAbs(Trend1);
pwre = 100*(Explo1 - Explo2) / Explo1;
bbid = Bid;
if(pwre >= ExplosionPower && pwrt >= TrendPower)
{
if(AlertWindow == true)
{
Alert(LastTime2, "- ", Symbol(), " - SELL ", " (",
DoubleToStr(bbid, Digits), ") Trend PWR ",
DoubleToStr(pwrt,0), " - Exp PWR ", DoubleToStr(pwre, 0));
}
else
{
Print(LastTime2, "- ", Symbol(), " - SELL ", " (",
DoubleToStr(bbid, Digits), ") Trend PWR " ,
DoubleToStr(pwrt, 0), " - Exp PWR ", DoubleToStr(pwre, 0));
}
LastTime2++;
}
Status = 2;
}
if(Trend1 > 0 && Trend1 < Explo1 && Trend1 < Trend2 && Trend2 > Explo2 &&
Trend1 > Dead && Explo1 > Dead && LastTime3 <= AlertCount &&
AlertExitLong == true && Bid != bbid)
{
bbid = Bid;
if(AlertWindow == true)
{
Alert(LastTime3, "- ", Symbol(), " - Exit BUY ", " ",
DoubleToStr(bbid, Digits));
}
else
{
Print(LastTime3, "- ", Symbol(), " - Exit BUY ", " ",
DoubleToStr(bbid, Digits));
}
Status = 3;
LastTime3++;
}
if(Trend1 < 0 && MathAbs(Trend1) < Explo1 &&
MathAbs(Trend1) < MathAbs(Trend2) && MathAbs(Trend2) > Explo2 &&
Trend1 > Dead && Explo1 > Dead && LastTime4 <= AlertCount &&
AlertExitShort == true && Ask != bask)
{
bask = Ask;
if(AlertWindow == true)
{
Alert(LastTime4, "- ", Symbol(), " - Exit SELL ", " ",
DoubleToStr(bask, Digits));
}
else
{
Print(LastTime4, "- ", Symbol(), " - Exit SELL ", " ",
DoubleToStr(bask, Digits));
}
Status = 4;
LastTime4++;
}
PrevStatus = Status;
}
if(Status != PrevStatus)
{
LastTime1 = 1;
LastTime2 = 1;
LastTime3 = 1;
LastTime4 = 1;
}
}
return(0);
}
//+------------------------------------------------------------------+
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