If you are a novice to the forex trading world, you have to understand that you don’t need all the tools in the market. For most beginners in this journey of finding what works, tend to try everything possible without sticking to one strategy or technique.
Starting trading with the right tools is crucial to how successful you will be. While the number of best metatrader indicators in the market is increasing everything, finding one that works is a daunting task every trader has to face. However, the Waddah Attar Explosion indicator is one crucial tool a lot of traders tend to use.
In this article, you will understand the reasons why traders use it. Additionally, you will learn the idea behind why most traders love using price action to trade the market comfortably.
The Waddah Attar Explosion Indicator
The forex market is like a mighty ocean, which can swallow anyone who is not careful. If that statement is a lie, ask a new trader who has blown his or her account on multiple times. Therefore, trading involves using various strategies, tools, and indicators. However, one essential tool some traders use is the Waddah Explosion Indicator. The indicator helps traders to identify if a trend is continuing quickly, or price just started moving.
The Waddah tool is an essential asset for most traders since it is usable on various timeframes in the market. With this, they can apply it on various currency notwithstanding their timeframe. Additionally, you can use a trading platform to decide, along with other essential tools. Using the Waddah indicator comes with various benefits for traders who have insight into this tool.
Advantages of Waddah Attar Explosion
Importantly, every trading tool has its advantages and disadvantages irrespective how people then to sugarcoat it. You must understand that no tool is 100 percent accurate in generating signal; however, you have to use it to your advantage.
One crucial reason why most traders use this indicator is that it can help identify when a strong price movement is about to happen. This movement can be in any direction, depending on the current trend of the market. Additionally, using this indicator, you can quickly know when a breakout is about to happen regardless of the direction of the breakout. The breakout usually is a strong move, which leaves its previous price area.
Another way of taking advantage of the Waddah indicator is by entering a particular trader in the direction of the breakout. What this means is that the trader will set up trades immediately the indicator gives signs that price has broken its previous level to a particular direction. With this, traders can take advantage of the breakout. Importantly, traders can identify these breakouts since the bars are evident in the indicator window, which gets longer and longer in a bid to touch the indicator window.
Furthermore, using this indicator helps you to identify the time a currency pair is consolidating or ranging. With this, you can determine if it is worth entering the market or waiting for a better time to go long or short. Traders can easily spot periods when the market is quiet.
The ranging market is when the price is moving within a confined area without moving upward or downward. Trading this kind of set up requires lots of skill and experience. Professional traders will always advice new traders to avoid trading a ranging market. In this situation, the Waddah indicator helps the trader identify these ranging periods because the histograms will have very low bars irrespective of the direction of the price.
Price Action Trading – Why some traders avoid indicators
The entanglement and total reliance on indicator can pose a lot of problem for most traders’ especial beginners. A major issue may be the lagging or inaccurate nature of most indicators; due to this, some traders prefer trading without any indicator. In trading, we refer to such traders as naked chart or price action traders.
Price action trader’s looks at previous price events, what is happening now, and reacts to what might happen in the future. At times, these traders rely on key support and resistance level since there is a psychological feeling concerning these areas.
Besides this, another way to trade the market without using any indicator like the Waddah Attar Explosion indicator is to use the swing high and lows. These swing highs and lows still follow the basic support and resistance area to create them. You don’t have to use any indicator, which can help to avoid any distraction and give you a clean chart to analyze the market.
Indicators with Price action
Is it possible for a trade to avoid indicators? The answer to this question will depend on various factors. Generally, traders can trade the market without using indicators but with certain limitations. For instance, indicators such as MACD, stochastic, RSI, Fibonacci retracement, moving averages, etc. can help you get better entry and exit points.
You can trade without indicators, but indicators help fine-tune your trading signals. It is like a radio box without an antenna; how clear it will depend on the signal and position of the radio. The same applies to indicators when trading price action. An indicator like Fibonacci retracement can help you know reversal points in the market and profit-taking areas. If you decide to use an indicator with price action, ensure you limit it to three so as not to clutter your chart, which may contribute to making a bad decision.
Summary Of Waddah Attar Explosion Indicator
When it comes to trading, there is no one-size fit all approach because of the dynamic nature of the market. You have to rely on what works for you – if using indicators gives you the result you want, stick to it.
However, if following any price action strategy works, implement it as your method of trading. After all, the objective of trading is to make a profit. Now you know what to do with the Waddah Attar Explosion indicator and take advantage of the market when trading.
However, our website contains numerous efficient tools and indicators that can make you trade like professionals, so take a look. You are facing the biggest financial market of all time; you need the right tools to win over the market.