This is a special indicator that is trusted and used by a handful of successful traders. The Weis Wave Volume (WWV) indicator is a powerful tool to help traders quickly identify the current price trend.
In this article, I will help you learn about this indicator and how to use it to trade Forex most effectively.
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What is the Weis Wave Volume indicator?
The Weis Wave Volume indicator (aka WWV indicator) is a technical indicator. It is built upon the current market trend aiming to describe the direction of the price movement. When the price develops a strong trend, the WWV indicator also grows bigger.
The Weis Wave Volume has 2 main colors which are green and red.
+ Green indicates an upward wave. The more the price increases, the bigger the green volume gets (the green WWV increases strongly).
+ The red color shows a decreasing wave. The more the price decreases, the bigger the red volume becomes (the red WWV increases sharply).
Meaning of the Weis Wave Volume
When trading and analyzing the market, professional traders use the Weis Wave indicator primarily to determine the current price trend. Because this is the most intuitive signal that the indicator offers.
How to trade Forex effectively with the Weis Wave Volume indicator
There are many strategies to use the WWV indicator to effectively open trending Forex orders. Here I will give you 2 of such strategies.
Strategy 1: Trade Forex on trend development signals of the WWV indicator
This trading strategy is very simple. You only need the WWV indicator to open orders.
Open a BUY order with the Weis Wave Volume indicator as follows:
+ Entry Point: When the WWV indicator changes from red to green. On the chart, a strong green candle appears in a downtrend.
+ Stop-Loss: At the nearest support level before the price rebounds.
+ Take-Profit: You should take profits when the price touches resistance levels that have been formed in the past.
Open a SELL order with the Weis Wave Volume indicator as follows:
+ Entry Point: When the WWV indicator changes from green to red. On the chart, a strong green candle appears in a downtrend.
+ Stop-Loss: At the nearest resistance level before the price rebounds.
+ Take-Profit: You should take profits when the price touches support levels that have been formed in the past.
Strategy 2: Combine the WWV indicator with a reversal candlestick pattern
The two reversal candlestick patterns I want to talk about here are Morning Star and Evening Star. According to statistics, this is the most reliable trend continuation signal. Specifically, in an uptrend, when a Morning Star candlestick pattern appears, it is very likely that the uptrend will continue. In a downtrend, when an Evening Star candlestick pattern forms, the price is likely to decrease further.
Open a BUY order with the WWV indicator as follows:
+ Entry Point: When the WWV indicator is generating a green wave. The market is in an uptrend and the Morning Star candlestick pattern appears. Open an order as soon as the candlestick pattern is completed.
+ Stop-Loss: At the nearest support level before the Morning Star candlestick pattern appears.
+ Take-Profit: You should take profits when the price touches resistance levels that have been formed in the past.
Open a SELL order with the Weis Wave Volume indicator as follows:
+ Entry Point: When the WWV indicator is generating a red wave. The market is in a downtrend and the Evening Star candlestick pattern appears. Open an order as soon as the candlestick pattern is completed.
+ Stop-Loss: At the nearest resistance level before the Evening Star candlestick pattern appears.
+ Take-Profit: You should take profits when the price touches support levels that have been formed in the past.
Summary
Weis Wave Volume is one of the most stable and accurate indicators for trend identification. Get familiar with this indicator today on a Demo account. Goodbye and see you again.
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The post How To Trade Forex Effectively With Weis Wave Volume (WWV) Indicator appeared first on How To Trade Blog.
source https://howtotradeblog.com/how-to-trade-weis-wave-volume-wwv-indicator/
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