Waddah Attar Explosion: Combining MACD Momentum and Bollinger Width

Summary

The Waddah Attar Explosion indicator combines the change in MACD with Bollinger Band width to represent directional momentum and volatility expansion. The MACD change is multiplied by a sensitivity coefficient and split into positive and negative histograms. Band width supplies the explosion line; a dead-zone threshold is intended to filter out small movements. A signal is considered when either directional histogram rises above the explosion line and the dead zone.

The document presents the indicator as useful for scalping on shorter charts and for comparing multiple timeframes such as M30, H1, and H4. It lists example settings for the moving-average lengths, band period and multiplier, sensitivity, and dead zone, while noting that the threshold should be adjusted to the instrument. It gives no backtest, entry or exit rules beyond the threshold crossing, or evidence that the signals are profitable. The indicator is therefore a technical signal recipe whose performance and suitable settings require independent testing.

Key ideas

• The indicator uses MACD change to estimate directional momentum and Bollinger Band width to represent volatility expansion.
• Positive and negative histogram components separate upward and downward movement.
• The dead zone is intended to filter weak readings, and its threshold should reflect the traded instrument.
• The document suggests use on short timeframes or through comparisons across several timeframes.
• No performance evidence or complete trade-management rules are provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.