Boom and Crash Indicator MT4 | MT5

Before diving into the indicator, one should know the keywords and origin of the indicator name.

To explain, a Boom refers to a towering increase in asset price whereas a crash means a sharp leap in the asset’s price. Therefore, a boom & crash indicator detects the signs of these 2 actions and warns traders about the potential danger or profit that could take place. The danger refers to the decrease in asset price for the long-term traders and the profit refers to the potential benefit that could be realized from shorting the asset.

The Boom & Crash indicator is quite efficient if used smartly. Therefore, it is advised to use it for small time interval trading and not for long positions.

Trading using the boom & crash indicator is quite easy. The indicator displays a signal under a candlestick if it has detected a boom and another signal above the candlestick if it has a crash.

Therefore, traders should be careful while trading using this indicator. Also, they should examine the current trend before shorting or going long on a position. 

To explain, if the indicator displays a signal below the candlestick during a downtrend, then it’s most probably a boom.  Whereas if it displays a signal above the candlestick during an uptrend, then it is probably a crash. 

1. Stabe version