Concept

Waddah Attar Explosion

Waddah Attar Explosion is a Volatility concept. The Library holds 3 implementations, each one a working definition you can pull into Quant.

Top Waddah Attar Explosion indicators

3 total

What is the Waddah Attar Explosion?

The Waddah Attar Explosion is a momentum-versus-volatility gate that emerged from the forex trading community, named after its creator, Waddah Attar. It plots a 'trend power' histogram, the bar-to-bar change in a MACD line scaled by a sensitivity multiplier (150 is a common default), against an 'explosion line' equal to the width between the upper and lower Bollinger Bands. Green histogram bars mark upward pressure, red bars downward. Most versions add a dead zone, a minimum threshold (fixed in some builds, ATR-derived in others) beneath which readings are treated as noise.

The logic: a move worth trading should show momentum expanding faster than the recent volatility envelope. A histogram bar rising above the explosion line (and clearing the dead zone) says directional energy exceeds ambient churn; a histogram below the line says conditions are compressed or trendless. It is a go/no-go filter with a directional color, not an entry, stop, or target system.

How traders use it

  • As an entry gate for trend systems: breakout or pullback signals are taken only while the histogram exceeds both the explosion line and the dead zone, and skipped when momentum cannot clear the envelope.
  • As a direction filter: green bars permit longs and red bars permit shorts, with histogram height read as the force behind the move rather than as a price objective.
  • As a compression-release timer: a histogram erupting through a flat explosion line marks the turn from contraction to expansion, pairing naturally with squeeze-style setups.

Related concepts · Regime & compression

Concept family

Volatility

56 concepts mapped · 43 in the Library

Waddah Attar Explosion FAQ

What are the default settings for the Waddah Attar Explosion?

Common builds use a MACD of 20- and 40-period EMAs, Bollinger Bands at 20 periods with 2 standard deviations, and a sensitivity multiplier near 150 for the histogram, plus an ATR-based or fixed dead zone. Defaults vary across platforms and ports, so verify the formula in the version you run rather than assuming one canon.

Is the Waddah Attar Explosion a buy and sell signal by itself?

No. It answers one question: is directional momentum strong enough, relative to recent volatility, to be worth trading at all. Color gives a lean, but there is no entry price, stop, or target logic in the tool. Most traders pair it with a structure or trend framework and treat the explosion condition as a filter, not a trigger.

Build Waddah Attar Explosion your way.

Quant writes, tests, and refines it with you — then it runs on LuxAlgo charting or ports to TradingView.