Boom and Crash Spike Indicator Guide
Boom and crash spike detector indicator in MT5 ( Metatrader 5 ) help you to better trade and make profits in MT4 also. But before, you need to have a good knowledge of the trend market and chart with discipline. All newbies find problems in forex and crypto trading, because it is not easy at all to enter a trade without understanding the trading system. So they need to learn and understand the process to make good results via boom and crash spike detector indicator in Tradingview. The indicator is avaible for free Download via Finansya MarketPlace.
Boom And Crash Spike Detector Indicator FAQ
What is a spike detector indicator for boom and crash ?
Boom and crash spike detector indicator in Metatrader 5 is a very good computer software. It defines potential spike entry signals in boom and crash indices. These entry signals are based on demand Levels, Moving Averages, Relative Strength Divergence, and Price behavior. Therefore, the Spike detector links all of these tools and identifies an entry point for the next Forex trade. And an icon appears before the spike zone to alert about the potential spike. It can provide trading signals. So you can take them as they are, or add your supplementary analysis to your chart to clarify the signals.
This MT4 indicator contains a lot of good features, which includes:
- Spike Alert: This corresponds to a warning from 10 to 100 seconds before the spike.
- Alert of continues spike: which corresponds to double and continuous spikes at the same time.
- Bigger timeframe trend
- signal for swing trading.
- Guarantee the fully Non-Repaint.
Boom corresponds to a period of increased commercial activity in either a business, industry, market, or economy. For a country, a boom refers to a period of rapid economic development marked by significant GDP growth, lower unemployment, a higher inflation rate, and increasing asset prices. Whereas for an individual company, it means fast and important sales growth. In the stock market Booms are associated with bull markets. While busts are associated with bear markets. Booms suggest that the economy is very bad, creating a positive output gap and inflationary pressures. A boom generates when the economy rises at a faster rate compared to the long-run direction rate of economic growth. Economic booms are unsustainable and often followed by a bust or downturn.
A crash is a sudden and important decline in the value of a market. It is frequently associated with an inflated stock market. Although any market can crash. This crash can be produced due to economic conditions. Such as the unwinding of a lot of leverage in a market, and by dread which happens when a market starts to move downward and produce fear in shareholders who want to sell at any cost. Some crashes generate when there are problems with the underlying mechanics of a market.
How do you read the spikes of boom and crash ?
To read boom and crash Spike detector indicator in MetaTrader you need to look at your chart. And you will see blue and red arrows. These arrows are used to detect the spike that will occur. Therefore the arrow happens before the happenings of the spike. To catch a spike on Boom 500 or 1000, a blue arrow will appear showing an upward direction. This means spikes will happen to go up. While to catch a spike on Crash 500 or 1000, a red arrow will appear showing a downward direction. This means spikes will happen to go down.
Furthermore, to make sure that the tendency is in your favor, you need to assure that the spike detector works perfectly. This means the Boom 1000/500 should be in an uptrend and the Crash should be in a downtrend. It does not necessarily signify that the spike detector must work like that. But it gives better results when the pairs are in these directions.
How do you trade with the boom and crash indicator ?
To trade the boom and crash index you need to follow the following steps:
1. Add boom and crash spike detector and HV S&R indicator to your chart. (these indicators can not be added directly to your chart from the indicators panel, so you need to download them).
2. Add the relative strength index to your chart. Boom and Crash spike detector indicator try to offer the best possible entry points for spikes. Which is why it combines the power of support and resistance levels and the strength oscillator. Set the “period” 14 in the oscillator setting. The robot automatically combines it into the entry signals, but sometimes you need to manually evaluate this oscillator before the trade.
Boom and crash spike detector indicator and moving average:
You can also add the Moving Average indicator to your chart. MA plays an important role in trading trends and reversals. Therefore, you can combine the spike detector and MA together to boost your probability of success.
How do you trade spikes boom and crash ?
In order to increase your probability of winning trades, you need to follow some rules and use them before you start using the Tradingview Boom and Crash spike detector indicator.
So, these rules are as follow:
1. Observe the direction: Before using this Tradingview indicator you need to ensure that the direction is in your favor. This means that the Boom 1000/500 should be in an upward direction and the Crash should be in a downward direction).
2. Price Action: To use the spike detector on Boom and Crash in its best way you need to know price action techniques. These techniques include:
- If the price is rejected from a level several times, it is a sign that there is long-term potential in the position. So you should hold one of your positions for long-term and take into account the timeframe.
- Don’t trade just because you have to trade. You have to ensure that the trade is worth taking. There are times when the Forex market is not following the Boom and Crash Spike Detector entries. In this case, you have to take a break and wait. Spikes occur regularly from initiation. So if you miss one there is a lot to catch don’t worry. Because the fear and regret of missing spikes can affect your decision and lead to severe losses. So you should keep calm whatever happens.
- the robot appears with highlighted Support & resistance levels with diverse colors and properties. So you can use a proper position size.
- Search different patterns in the pair (ascending or descending triangles, wedges…), this helps you to take only good positions and provide the reliability of position.
Tips to trade with Boom and Crash spike detector
It is not easy at all to trade with boom and cash spike detector indicator in MT5, and also the risk associated is huge. That is why I will give you some tips you should follow to better trade with this MT4 indicator.
1. Draw a clear chart: It is very important to draw a clear and understandable MT4 chart before you start your trading, like supporting and resisting levels, request and offer, etc. so you can analyze and follow the trade easily in MT5.
2. Place your stop-loss prudently: Before setting the Stop-loss you should take into account three points:
- Spread: You should think about the spread while putting your Stop-loss, for example, if you sold an asset and your Stop-loss point is 10500, in this case, the wise Stop-loss would be 10499.
- Stop-loss hunting: Generally we put stops below or above support and resistance levels or offer and request locations. But preferably put your stop loss in a distance from your level and wait for the ideal entry sign to not fall into the trap of the market, because sometimes the market catch stop-losses to kick out risk-averse traders and compensate the courageous ones.
- Risk Return Ratio: you should not let your risk exceed 50% of your return, so put your Stop-loss depending on your expected return.
3. Follow the price action techniques mentioned earlier.
4. Take a break when needs: Boom and Crash Spike Detector is a profitable concept, so it is easy to become addicted to it. But, sometimes, the Forex market is not in your favor and does not respect your technique, in this case, you should take a break.
What is the difference between boom 500 and boom 1000 ?
In Boom 500, a spike happens every 500 ticks on average, while in Boom 1000, a spike happens every 1000 ticks on average. In addition Boom 1000 is more volatile than Boom 500.
What Is the Difference Between crash 500 and crash 1000 ?
In Crash 500, a drop happens every 500 ticks on average, while in Crash 1000, a drop happens every 1000 ticks on average. In addition Crash 500 is more volatile than Crash 1000.
Download Boom and crash spike detector indicator for MT4
Boom and crash spike detector indicator for MT4 is a technical indicator that detects spikes in every trade. It appears in MetaTrader 4 in the form of red and blue arrows to help you to catch the Boom and the Crash. Trading with this MT4 indicator is a good way to grow a small equity account.
Download Boom and crash spike detector indicator for MT5
Boom and crash spike detector indicator for MT5 is known for its spikes, it is an excellent method to trade with. It can help you to make wealth in MetaTrader 5, but the risk associated is huge so you can use other techniques as mentioned above to avoid this problem. By using this MT5 indicator you don’t need to stay all day in front of your computer waiting for the appearance of the signals, therefore it can send you a signal alert on your phone.
Download Boom and spike detector indicator for Tradingview
Boom and crash spike Detector indicator in Tradingview also gives a trading signal as shown below in the chart (red arrow for Crash and blue arrow for a Boom). you can take them as they are or add additional chart analysis to clarify the signals in your Tradingview platform.
The MT4 boom and crash spike detector indicator which can be used in MT5 or Tradingview platforms works correctly solely on price rallies and price drops. It is a very helpful but difficult indicator. It is a new trend for a lot of traders, and became an addiction due to its unique behavior, therefore, it follows each technical and price action system which is why attracts traders who have problems with fundamental analysis. Moreover, the boom and crash spike detector indicator is free to download.
- The boom and crash spike detector MT4 indicator is a powerful indicator for forex trading that defines potential spike entry signals.
- It displays on your MT5 chart in form of arrows, these arrows show you different Booms and Crash signals.
- You can add a supplement analysis to your chart to clarify the signals.
- To make better results, you need to ensure that the direction is in your favor.
- To increase your probability of winning trades, you need to follow the rules indicated above before starting using the Boom and Crash Spike Detector indicator in Tradingview chart.