FxNews—Today, we have an indicator that provides entry signals and displays the trend direction on the MetaTrader 5 chart. This MT5 indicator was developed by Mr. Lesedi Oliver Seilane, a well-known member of the MQL community who has created more than ten indicators.
Today’s article concerns Mr. Seilane’s ‘Boom and Crash Gold Miner Trend’ indicator. This indicator is free, which is very generous of him.
What is Boom and Crash Gold Miner Trend v2: Settings Explained
This is the second and last version of the indicator, version 2. The Boom and Crash Gold Miner Trend V2 indicator has a straightforward guideline. The indicator is a histogram with red and blue colors, as shown in the image above. The indicator’s setting has three sections:
Boom and Crash Gold Miner Trend v2 Deviation %
Deviation tools help traders know that prices are moving away from the average, which could assist us with what might happen next in the market.
The deviation value in this indicator is set to 0.1 by default, but users can change this number as they prefer. The greater the deviation value, the less sensitive the indicator is to the small changes in the market, meaning there will be fewer signals from the indicator.
Therefore, if a trader plans to use the indicator in a smaller time frame, increasing the deviation settings is advisable to filter the minor changes in the price chart.
Trend v2 Period
This setting also helps traders filter incorrect signals and smooth the histogram, which makes it less sensitive to price changes. On default, the number is set to 14, which sometimes gives many signals that could be incorrect.
Suppose you change the Trend V2 period setting to 28. In that case, the indicator will give fewer signals but be more accurate. Therefore, if a trader plans to use the indicator in a smaller time frame, increasing the number of the ‘Trend v2’ Period setting is advisable to filter the minor changes in the price chart.
Trend v2 Power
The indicator provides less signal and smoothes its histogram by increasing the number of the ‘Trend v2 Power’ setting. The default setting is 2, which works just fine.
How to Trade Using the Boom and Crash Gold Miner Trend Indicator
Utilizing this indicator in technical analysis is utterly easy and simple. The indicator can be mixed with other tools as well. Stay with us till the end of the article to learn about new strategies that can be implemented with the ‘Boom and Crash Gold Miner Trend’ Indicator.
Buy Signal
When the ‘Boom and Crash Gold Miner Trend’ histogram is blue, the trend is bullish, and a buy order should be executed. The exit strategy is also simple. The buy order should be closed when the histogram changes color from blue to red.
Sell Signal
When the ‘Boom and Crash Gold Miner Trend’ histogram is red, the trend is bearish, and a sell order should be executed. The exit strategy from the sell order is straightforward. The sell order should be closed immediately after the histogram changes color from red to blue.
Boom and Crash Gold Miner Trend Trade Sample 1
The image above belongs to the USD/CAD currency pair and the four-hour time frame. The price chart has the ‘Boom and Crash Gold Miner Trend’ indicator.
The first buy signal was on September 25 at 1.3487. The bars turned blue, which is a buy signal. Then, on October 1, the buy order should be closed because the indicator changed to red.
The second signal emerged on October 3 at 1.3529, highlighted on the chart. The bars changed their color to blue, so if a buy order had been executed, the trade would have ended with a total of +238 pip on October 15, when the color changed to red.
Boom and Crash Gold Miner Trend Trade Sample 2
The image above represents the EUR/USD currency pair; the time frame is 4 hours. The ‘Boom and Crash Gold Miner Trend’ indicator’s bars turned red on September 30, giving a sell signal.
The trade’s profit is +300 pips and increasing. Please note that the trade should be immediately closed as soon as the bars change their color to blue.
How to Use Boom and Crash Gold Miner Trend with Other Indicators – Sample 1
Despite the samples above that provided positive signals, traders should be aware that the ‘Boom and Crash Gold Miner’ indicator is also a lagging indicator with faulty signals. Therefore, mixing these indicators with others is advisable to filter false signals.
Adding the Harmonic Pattern indicator to a chart featuring the ‘Boom and Crash Gold Miner Trend’ can also develop a powerful strategy that filters incorrect signals tremendously.
The 4-hour chart below will be analyzed using the Harmonic pattern and Boom and Crash Gold Miner Trend indicators, a live sample that assists in comprehending this strategy.
The 4-hour chart formed a bearish Gartley pattern. Meanwhile, the Boom and Crash Gold Miner Trend bars are still blue, meaning they have not confirmed a sell order. To enter a sell order, we should wait patiently for the Boom and Crash histogram to change its color to red and then execute a sell order.
Please note that the order should be open until the Boom and Crash Gold Miner Trend changes color to blue.
How to Use Boom and Crash Gold Miner Trend with Other Indicators – Sample 2
The following example shows the 4-hour chart of ETH/USD when a bullish Gartley pattern was formed. After that, the Boom and Crash Gold Miner signaled buy, and a buy order should have been executed on August 21 at $2,627. Consequently, the Ethereum price surged to $2,815, a great profit from mixing the Harmonic pattern with the Boom and Crash Gold Miner Trend indicator.
Final Word
I hope you enjoyed this article about the ‘Boom and Crash Gold Miner Trend’ indicator and find it useful for your technical analysis. Please note that all technical indicators are considered lagging tools where the data is shown with delay.
These tools cannot predict the market but attempt to demonstrate the trend based on the price history. Therefore, be careful when using these tools, mix them with other indicators, and follow fundamental analysis and the latest market news to make the best of your trading journey.