Waddah Attar Explosion Indicator for MT5

This indicator for MetaTrader 5 measures how fast price momentum is changing and compares it with current volatility. It then draws the result in its own window, so you can see at a glance whether the market is active enough to be worth attention or sitting in a quiet range.

How it works

The tool combines three ideas in a single sub-window display.

Momentum histogram

Momentum is taken from the gap between a fast and a slow exponential moving average, in the manner of a MACD. The change in that gap from one bar to the next is multiplied by a sensitivity input, which gives a measure of acceleration. The result is drawn as a colour histogram with four states: bullish momentum increasing, bullish momentum weakening, bearish momentum increasing and bearish momentum weakening.

Explosion line

The explosion line is based on standard deviation over a period you can configure. It rises when volatility expands and falls when the market calms down. When the histogram is taller than this line, trend strength is outpacing volatility.

Dead zone line

A smoothed true range calculation sets a floor for market activity. While volatility stays under this level, the market is treated as low energy and signals are suppressed.

Signal arrows

Buy and sell arrows are shown only when these conditions agree:

• the momentum direction is clear;
• trend strength is above volatility;
• volatility is expanding;
• activity is above the dead zone.

Markets and timeframes

The indicator can be attached to any symbol in your MT5 terminal and to any timeframe. Lower timeframes produce more arrows and more noise, while higher ones give fewer, slower readings. Because volatility differs between forex pairs, metals, indices and other instruments, review the lines on a chart history of the market you follow before relying on the defaults.

Settings

The exact input names and default values are shown in the Inputs tab when you attach the indicator, so check them there. In general the inputs cover the following areas.

Risk

An indicator shows what has already happened to price and volatility. Arrows can appear late, can fail, and can cluster during choppy conditions. Use position sizing and stop losses that suit your account, and test on a demo account first.

Installation

1. Download the file from your account and unpack it if it is archived.
2. In MetaTrader 5, choose File, then Open Data Folder.
3. Copy the indicator file into MQL5, then Indicators.
4. Restart the terminal or refresh the Navigator panel.
5. Drag the indicator from the Navigator onto a chart and adjust the inputs.
6. If you want notifications, enable them in the inputs and in the terminal options.