Magic Wave Indicator
Apr
Magic Wave Indicator for MT4 is a non-repaint, fractal-based buy/sell indicator. This indicator helps stock and forex traders to identify price breakout signals and trend continuation patterns in every market session.
This combination of a price-action pattern detector and a trend-wave algorithm is used to show potential trade entry points. Follow the red/green arrows at the top/low price bars to easily identify the buy/sell signals.
Everyone can understand the basic trade signals displayed on MTF charts by the Magic Wave Indicator. To trade consistently, however, it is important to learn how to identify the right signal, and when to avoid trading losses in volatile market conditions.
This guide will explain how MetaTrader 4’s Magic Wave Indicator generates profitable trade signals.
Use the Magic Wave Indicator to determine potential buy/sell signals in MT4.
Magic Wave Indicator uses a price wave pattern to determine its trend direction. The indicator automatically detects a trend reversal and continuation pattern when the price crosses the low or high of multiple inside bars. The magic wave pattern usually forms in a market consolidation phase, particularly if the price candles close within a bullish or bearish area. When the price leaves the consolidation area, the indicator will issue a sell/buy alert and arrow signals.
You can utilize the magic wave signals during a bullish or bearish market to identify trend-following opportunities. We’ll take a buy signal if the indicator displays a green line during a bullish market. A red arrow that is above the inside bar’s highest in a downtrend markets indicates a sell signal.
This example shows how you can take advantage of a bullish breakout to get long. The price recovered from its bottom after the bearish rally ended. It then initiated a bullish movement and plotted several bullish candles, establishing an uptrend. The indicator issued a buy signal when the price reached the top of the inside bar.
Conclusion
The Magic Wave Indicator works in every time frame, daily, weekly and monthly. It is easy to use and beginners will find it simple to show the buy-sell signal. Avoid trading in volatile markets. Wait for the bullish/bearish trend signal to confirm an order before placing any orders. You may also add an MT4 indicator to the Magic Wave for greater results.
