Magic Wave Indicator

Magic Wave Indicator

Magic Wave is the best wave-pattern-based forex & stock buy-sell indicator for MT4. Generates trend continuation/price breakout signals & super trading alerts.

The Magic Wave Indicator is a fractal-based non-repaint buy/sell signal indicator for MT4. It helps forex and stock traders identify trend continuation patterns and price breakout signals in all market sessions.

It applies a trend-wave formula combined with a special price-action pattern detector for showing potential trade entry positions. You can easily distinguish the buy/sell signals by following the green/red arrows printed at the high/low of the price bar.

From beginners to expert professionals, everybody can read the simple trade signals of the Magic Wave Indicator on MTF charts. However, for a consistent trading experience, you must learn to pick the correct signal and avoid weak trading opportunities during vulnerable market conditions.

In this guide, you’ll learn how the Magic Wave Indicator determines profitable trade signals in MetaTrader 4 platforms.

How to assess potential buy/sell signals using the Magic Wave Indicator in MT4

The Magic Wave Indicator follows a unique price-wave pattern. It automatically determines possible trend reversal or continuation setup whenever the price breaks the high or low of multiple inside bars. Generally, the magic wave pattern forms during a consolidation period of the market, especially when the price candles keep closing inside a large bullish or bearish bar. The indicator issues a buy/sell alert with arrow signals whenever the price moves out of the consolidation range.

During a solid bullish or bearish market, you can use the magic wave signals to spot trend-following trading opportunities. If the indicator shows a green arrow during a bullish trend, we’ll consider it a buy signal. Oppositely, a red arrow above the inside bar high in a downtrend market means a perfect sell opportunity.

In the above EURUSD chart, the price was initially under a downtrend condition and plotted several lower highs. The indicator printed a red arrow right after the price broke the current inside the bar’s low during a pullback period. We’ll consider such an alert a potential sell signal since it appears following the ongoing bearish trend.

The above example also shows a perfect opportunity to go long following a bullish breakout. After finishing the large bearish rally, the price rebounded from the bottom. Next, it initiated a bullish move and plotted multiple bullish candles establishing a solid uptrend. Once the price broke above the inside bar’s high, the indicator issued a buy alert.

Conclusion
The Magic Wave Indicator is equally effective in all timeframes, including daily, weekly, and monthly charts. The way it demonstrates the buy-sell signal is simple and beginner-friendly. We recommend avoiding trading in choppy markets and waiting for a solid bullish or bearish trend signal before confirming an order. Also, you may add an MT4 trend indicator alongside the Magic Wave for better results.