Contents
Today I will present the one that is quite simple, but effective. It is called the Weis Wave Volume indicator and with it, you will be able to identify the trend fast. Many different indicators can be used to improve your trading results.
Key Takeaways🔑
| →Weis Wave Volume (WWV) is a useful indicator for identifying trends and their strength. |
| →WWV can be combined with Exponential Moving Average (EMA) or Heiken Ashi candlesticks for effective trading strategies. |
| →Always test new strategies on a demo account before using them on a live trading account. |
What is Weis Wave Volume?
Weis Wave Volume is a volume-based indicator. It shows the volume in cumulative form for increases in the price chart and for decreases. The indicator window, therefore, shows a histogram which consists of green or red rising waves.
Setting the IQ Option chart
The first step is to log in to the IQ Option trading account. Once you are in, you have to choose the financial instrument for the session. Set the type of the chart. Next, click on the indicators icon and choose the Volume group of indicators. You will see the Weis Wave Volume on the list on the right side. Click on it and it will be added to your chart.
The Weis Wave Volume indicator helps to identify the direction of the trend as well as its strength. It will take the form of the green bars when there will be an uptrend in the market and red in case of the downtrend. When the trend gains strength, the volume becomes bigger.
Using the Weis Wave Volume indicator in trading
I am going to present two simple trading strategies that are based on the Weis Wave Volume indicator.
Weis Wave Volume simple strategy with EMA
The first strategy requires you to combine the WWV with the Exponential Moving Average. The period of the EMA should be set for 30.
The price crosses the EMA when a new trend is created. Then, the indicator will follow the price direction. Used in combination with the WWV, confirms the trend.
You can open a long position when the price crosses the EMA30 from below and the Weis Wave Volume turns green.
Open a short trade when the price intersects the EMA30 line from above and the WWV indicator changes the colour from green to red.
Pros and Cons of Using Weis Wave Volume Indicator
Pros👍
- Easy to understand and interpret
- Helps identify trend direction and strength
- Can be combined with other indicators for improved trading strategies
Cons👎
- May produce false signals in sideways markets
- Relies on historical data and may not always predict future trends accurately
WWV Indicator Combinations
| Indicator Combination | Strategy Description |
|---|---|
| WWV + EMA | Open a long position when the price crosses the EMA30 from below and the WWV turns green. Open a short position when the price intersects the EMA30 line from above and the WWV changes from green to red. |
| WWV + Heiken Ashi | Go long when the WWV indicator changes from red to green and the Heiken Ashi candles are blue. Go short when the WWV indicator turns red and the Heiken Ashi candles are red. |
Weis Wave Volume simple strategy with Heiken Ashi
In this strategy, you will have to change the chart type to the Heiken Ashi candlesticks. Use a 5-minute timeframe. Your position can last 15 minutes or more.
You can go long when the colour of the WWV indicator changes from red to green and the candles on the Heiken Ashi price chart are blue in colour.
Go short when the Weis Wave Volume turns red and the Heiken Ashi chart is red.
Summary
The Weis Wave Volume is an effective indicator that can be used to determine the direction and strength of the trend. In fact, you can do it at one glance only.
You can also combine the WWV with the EMA or the Heiken Ashi candlestick to get powerful trading strategies. Just follow the simple rules, wait for the conditions to be fulfilled and open a trading position.
Always test a new strategy in the demo account. IQ Option provides such an account without any costs and you do not risk your money there. Practice as long as you need to and then move to the live one. If you have already used the WWV indicator and would like to share your comments, please visit the comments section below.
Wish you success!
Q&A: Weis Wave Volume Indicator
- Q: How can I best use the Weis Wave Volume Indicator in my trading?
- A: Combine the WWV with other indicators, such as EMA or Heiken Ashi candlesticks, to create powerful trading strategies that help identify trend direction and strength.
- Q: Can the Weis Wave Volume Indicator be used for different timeframes?
- A: Yes, the WWV indicator can be applied to various timeframes depending on your trading style and objectives.
- Q: What is the main advantage of using the Weis Wave Volume Indicator?
- A: The WWV helps traders easily identify trend direction and strength, making it a useful tool in decision-making processes.
- Q: How do I avoid false signals from the Weis Wave Volume Indicator?
- A: Combining WWV with other technical analysis tools and indicators can help filter out false signals and improve the accuracy of your trades.
- Q: Should I rely solely on the Weis Wave Volume Indicator for my trading decisions?
- A: No, it's essential to use a combination of technical analysis tools, indicators, and your own research to make informed trading decisions.