Индикатор E-rainbow Форекс Форум

Hi folks, I�ve been reading these posts for sometime and I think it�s about time I declared myself. But before I do I would like to say a special hi and a big thanks to Ingot for his wisdom and willingness to share his knowledge; wherever he is.

Ingot, I had to smile when I first read about trader Joe and trader Bill, because I know one of those people very well. Trader Bill gives a damn good impression of my brother-in-law. In a roundabout way he got me interested in trading currencies - sorry I mean in the idea of trading currencies, I haven�t done it yet - after hearing his �I�m making an absolute fortune Day Trading� speeches. However, the information my wife was getting from her sister was telling a different story.

I�m not now and never have been a gambler, but the more I looked at this thing he was doing I thought: �there is something to this�. I searched for information on day trading and eventually began paper trading, but, and as Ingot has mentioned, this day trading means being glued to the screen all the time and I didn�t like that. So I kept looking for information and that�s when I came upon BabyPips and this thread.

I am still reading and, sometimes, rereading Spud�s posts, as I am not the quickest of learners and I am finding some aspects a little difficult to understand at times. Being very much the novice and, in the shadow of obviously experienced traders, I don�t feel I have anything meaningful to add to any of the posts as yet. Hopefully that will change as I grow in understanding and experience and I am able to put something back into the pot. For the meanwhile, however, I am still on the search for knowledge.

:o I have held off asking a question for fear of feeling stupid, as everybody else appears to know how to do something that I do not. But I read in these posts somewhere, something along the lines of: �if you don�t know ask, we all have to learn and there will be others who are thinking the same thing�. So here goes:

Firstly, thanking Droesparky and Andy for all of their hard work, how do you put the (Rainbow MAs) and (Colour Stochastic) templates into Metatrader? Thank you.

The Rainbow forex indicator is an mt4 technical indicator with seven moving averages(ma) to make a rainbow of forex support or resistance. This rainbow act as a chart support or resistance zone. 

Moving averages determine the trend&#;s direction and find the dynamic support or resistance levels. Price respects the moving averages. 

How does the rainbow mt4 indicator work?

The moving averages(MA) are used to find the primary key levels on the mt4 chart. But sometimes, they need help to give exact chart reversal points. That&#;s why there is a mix of seven moving averages in rainbow forex indicators that are all used to see key reversal levels on the chart. 

These seven moving averages(MA) make a wide zone. This expansive zone act as a chart support or resistance level. 

Price bounces from the forex rainbow of moving averages(MA). After the breakout of the rainbow, a chart price trend reversal occurs. The price trend changes. 

• If the price breaks the forex rainbow of moving averages with a big bullish chart candlestick breaching through all the moving averages, the chart price trend changes from bearish to bullish.
• Conversely, if the price breaks the forex rainbow with a big bearish chart candlestick breaching through all the moving averages, the price trend changes from bullish into bearish.

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Types of moving averages used in rainbow forex indicator

Seven moving averages with different periods are used in the rainbow indicator. You can also change the period according to the requirements. But we recommend you use the moving averages from low to high in the following periods.

• 9 Period
• 16 Period
• 21 Period
• 35 Period
• 41 Period
• 55 Period
• 61 Period

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These are recommended moving averages to make a rainbow of moving averages. You can assign different colors depending on the strength of each moving average. 

Rainbow indicator signals in mt4

Buy signal

When a big bullish candlestick breaches through the seven moving averages and closes above the MAs, it shows a buy signal. It would help if you stayed in the long direction until a price breaks the 61 Period moving average in the opposite direction. 

Sell signal

When a significant bearish candlestick breaches through the seven moving averages and closes below, it shows a sell signal. Keep holding a sell position until a breakout of 61 periods moving average does not happen in the opposite direction. 

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Conclusion

The Rainbow in mt4 is the best and most simplistic indicator for newbie traders. It can also generate profits in the forex market if traded with other confluences like chart patterns or trading indicators. 

Use candlestick patterns to get high accuracy and winning signals with a rainbow indicator.

Rainbow Forex Indicator MT4 Free Download

Submitted by Azim

Hello everyone..

I just found a strategy that should be easy for anyone eunic-brussels.eu first of all i would like to thank the author (Trader) for sharing and thanks to Edward & the team too for leading us to the path to become a 'real' trader.

Alright lets get started=D

Timeframe : 30min
Pairs : GBP/JPY, GBP/USD, EUR/USD (Recommended)

RAINBOW MADNESS V1

Just take a look at these examples.

All these trades were profitable. But you can not see 7. And 8. Trade profit area. I just can say it was hit. Just so you believe me there is another pic

If you would take some trades after trade 8. Your profit would still get hit as you can see last move down.

If we take a look at these examples we can say that we go long if price is above RAINBOW and short if price is below RAINBOW. We can also say that we go long or short if rainbow colors are in right order. Take a look at pic again and you’ll understand.
We want for price to find support somewhere in rainbow NOT somewhere on other side of rainbow.

So first of all what we need:

Rainbow MMA06
Rainbow MMA07
Rainbow MMA08

For those who don't use MetaTrader:

MMA06MMA07MMA08

68 EMA50 EMA35 EMA
65 EMA47 EMA33 EMA
62 EMA44 EMA31 EMA
59 EMA41 EMA29 EMA
56 EMA39 EMA27 EMA
53 EMA37 EMA25 EMA

We have to add 2 EMAs as well:

10 EMA close
12 EMA open

Make your rainbows in different colors. In my chart – 06 is green, 07 is purple, 08 is blue.

So stoploss and take profit. It’s easy to place stoploss. Real art is to place take profit right. I use FIB levels as TP. If you like you can add 50 EMA, 89 SMA, SMA, SMA, EMA and use them as profit areas. Also you can use big numbers.
So:
• FIB levels
• MA’s
• Big numbers
• 10/12 EMA cross
• Etc.
I place my stoploss at previous high/low. If SL is very small and there is very high possibility it is going to get hit, place it at next high/low.

So SL and TP examples. WHITE – SL and BLUE - TP

And rules:

Long:
Rainbow 07 is above rainbow 06 and rainbow 08 is above rainbow 07
10 ema and 12 ema cross

Short:
Rainbow 08 is below rainbow 07 and rainbow 07 is below rainbow 06
10 ema and 12 ema cross

Next is the improved version

RAINBOW MADNESS V2

What we need for RAINBOW MADNESS v2:

MACD
Heiken Ashi Smoothed
Many MA’s
Trigger MA’s
Stoch
And a trend.

SETTINGS:

MACD –
Heiken Ashi Smoothed –
MA’s – If you use MetaTrader than all you need is 06,07 and 08 set Rainbow’s. If you dont you have to put these on your chart:
MMA06MMA07MMA08

68 EMA50 EMA35 EMA
65 EMA47 EMA33 EMA
62 EMA44 EMA31 EMA
59 EMA41 EMA29 EMA
56 EMA39 EMA27 EMA
53 EMA37 EMA25 EMA

Every set of MA’s should be in different color. Just so it would be easier for you.

Trigger EMA’s – 10 EMA (open) ; 6 EMA (close)

You can use other set of trigger EMA’s if you want to. Like 5 EMA (open); 5 EMA (close) etc. But you should know that every MA’s set has problems. Find one that works for you or use 10/6 or 10/8

Stoch – If you want you can use usual stoch but it takes some room so I like to use stoch alert.
Stoch
Overbought – 75
Oversold – 25

If you want to use usual stoch than put it on your chart with stoch alert just so you could understand why usual stoch gives many more signals.

Why we need all these indicators?

Cuz everyone of them improves other.
Like trigger MA’s. They give many false signals but Stoch helps to escape them. And sometimes stoch gives false signals and MA’s help.
Heiken Ashi candles work together with Rainbow.

MACD:
I have added 2 levels to MACD: ; The are between them is called Silent Zone. When MACD is somewhere in this channel we don’t take any trades. When MACD candle ends above/below this channel we can start to think – yes or no.
Why do I need this stupid channel you ask? See example.
Everything is showing that price is going down: RED Heiken Ashi, Rainbow, stoch, Trigger MA’s and MACD but MACD is still in the Silent Zone (We would enter trade on next candle after blue line if this would be right trade)
So no trades while macd IS IN SILENT ZONE.

Next 4 canles: (stoch)

With this I mean that we enter trade only on next 4 candles after stoch makes a cross. If everything gives a signal later we don’t take the trade.
One thing about stoch alert. Stoch makes cross AFTER arrow candle ends.
That’s when we start to watch if we can take the trade.

So anyway 4 candles. In this case we can enter trade only on sixth candle.
Much too late.

So anyway rules for entry:

LONG –
MACD is above 0 and out of Silent Zone and previous candle is green.
Stoch has made a cross. (Arrow on my chart. REMEMBER – stoch has made a cross after arrow candle. So first candle when we can enter trade is candle after arrow candle)
Rainbow is in right order. If you don’t know what is right order see Rainbow Madness V1.
Price bounces off somewhere in rainbow.
Previous heiken ashi candle is blue.
Trigger MA’s has made cross.
REMEMBER - 4 candles!

SHORT –
MACD is below 0 and out of Silent Zone and previous candle is red.
Stoch has made a cross. (Arrow on my chart. REMEMBER – stoch has made a cross after arrow candle. So first candle when we can enter trade is candle after arrow candle)
Rainbow is in right order. If you don’t know what is right order see Rainbow Madness V1.
Price bounces off somewhere in rainbow.
Previous heiken ashi candle is red.
Trigger MA’s has made cross.
REMEMBER - 4 candles!

I believe that examples will help you understand much better.

And now – Take Profit and Stop Loss.
That’s up to you. I’m just going to make a list and you can chose or if you want do it how you like it.
SL-
previous high/low
round number areas
strong s/r level
Some indicator like bbands stop v1

TP-
Fibo levels
R:R
S/R levels
Some indicator
Price action
Etc.

Downloads:

RainbowMMA_mq4
RainbowMMA_mq4
RainbowMMA_mq4
rainbow_eunic-brussels.eu
_Heiken_Ashi_eunic-brussels.eu4
_Stochastic_Cross_eunic-brussels.eu4

Those files are the explanation and indicators.

What I want to discuss is on "Rainbow Madness V2" as I hardly understand some of them. so hope you guys can help me on this.

HAPPY TRADING!
Azim

Edward Revy,
eunic-brussels.eu
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