Forex Rainbow Averages Trading Strategy Forex Rainbow Averages Trading Strategy

Moving Average Rainbow Forex Scalping Strategy For MT4

Table Of Contents:

1. Moving Boilerplate Rainbow Forex Scalping Strategy For MT4
2. Fundamental indicators used in the system
3. Functions of the indicator
   1. MA 10 and MA 12
   2. Rainbow MMA
   3. MA Shade
   4. ASC Trend Alert
   5. RCS Fibo
4. The long trade setup sequence
   1. Stop loss
   2. Take profit
   3. Cease loss
   4. Take profit
5. Moving Average Rainbow Forex Scalping Strategy For MT4 – Useful advice
6. Moving Boilerplate Rainbow Forex Scalping Strategy For MT4 – Conclusion

Please annotation: This strategy was publicly published in the trading community and is gratuitous to use. We exercise Not make an attempt to decide if this strategy is profitable or not, because nosotros know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.

The
Moving Average Rainbow Forex Scalping Strategy For MT4
is a scalping strategy that can be used on the time frames M5 and college. According to the inventor of the strategy is works on any forex pair. This strategy shows trend extreme points and gives yous signals to merchandise the reversal to the hateful. When y’all load the template of the strategy then you will see many colored moving averages. Some of them are even looking like a rainbow.

Though the Moving Boilerplate Rainbow Forex Scalping Strategy For MT4 depends on few sets of complex indicators, we are going to requite you lot step-by-footstep guidelines to utilise the system. At the initial stage, yous should learn to utilise this strategy in the demo platform and in one case you become skilled, you may move to the existent business relationship. At present let’s encounter the cardinal elements used in this system.

Key indicators used in the organisation

1. MA ten and MA 12
2. Rainbow MMA
3. MA Shade
4. ASC Trend Alert
5. RCS Fibo

Nautical chart setup with the Moving Boilerplate Rainbow Forex Scalping Strategy For MT4

Functions of the indicator

To use the Moving Average Rainbow Forex Scalping Strategy For MT4 properly, nosotros take to know the functions of this indicator very precisely. Once you get a general idea about the use of these essential indicators, you should exist able to bank check the prime weather to execute the long and short trade.2

MA x and MA 12

Sime moving average with periods ten and 12 are used in the Moving Boilerplate Rainbow Forex Scalping Strategy For MT4 to place the potential reversal zone. If the 10 moving average crosses beneath the 12 moving average consider it as a bearish reversal indicate.

Identifying the reversals in the marketplace

On the contrary, if the red color 10 moving average crosses above the 12 moving average, nosotros should consider it every bit a bullish reversal signal. Since the system will be used to scalp the market, we are using a lower menstruation so that the moving average can hands react to the small change in the price.

Rainbow MMA

The Moving Average Rainbow Forex Scalping Strategy For MT4 uses three variations of the Rainbow MMA indicator. The all-time thing about this indicator is that yous don’t take to change any settings or install it individually. Merely load up the template named MA Rainbow and you lot volition be fine.

The rainbow MMA has 3 distinct color bands. During an uptrend, the light-green color MAs will be trading below the imperial and blue color MMA. On the contrary, the green MAs will merchandise above the majestic and bluish MMA during a downtrend. Pay attention to the gradient of the MMA as it also tells the management of the tendency.

MA Shade

The MA shade is a elementary indicator used to clarify the existing trend. It works based on two input parameters. MA period i is gear up to 180 and the MA period 2 is prepare to 360. You don’t have to change whatsoever settings since the default settings work well with major and minor currency pairs.

Identifying the tendency with MA

The MA shade can also be used to trade the sudden reversal in the lower fourth dimension frame. If the price falls beneath the grey bars in the main nautical chart, consider it as a signal for the downtrend. On the contrary, if the price breaks to a higher place the grey bar, it is an indication that the bulls are getting stronger.

ASC Tendency Alert

The ASC trend alert is an active filter used in the Moving Average Rainbow Forex Scalping Strategy For MT4. When the price exam a major resistance and fails rally higher, you lot should meet a royal color downward pointer right above the resistance level.

On the opposite, if a support level holds, you should see a yellow color upwards arrow in the chart. Notation that this arrow mark is non the only confirmation to take the trades. Consider the pointer marking as an additional tool to analyze the quality of the trade signals.

RCS Fibo

The RCS fibo works as the prime support and resistance level identifier in the Moving Average Rainbow Forex Scalping Strategy For MT4.  It prints the support and resistance level in the main chart with a linear green color horizontal line.

While analyzing the market data, try to expect for the merchandise signals near the RCS Fibo levels. By doing then, you should be able to take the trades at the prominent back up and resistance level. But avoid taking the trades during the major news release even though the price might be almost a back up or resistance level.

The long trade setup sequence

The Moving Average Rainbow Forex Scalping Strategy For MT4 is mostly used in the M5 and M15 time frames. Though you can utilise the arrangement to trade the M1 time frame information technology requires extreme skills and precision. Now permit’southward run across the process by which we can accept the long trade with this organisation.

Conditions to execute the long trade

1. Movements in the major currency pairs are much more stable and offer better trading opportunities. So, pick a major currency that has a depression spread.
2. Wait for the bullish cantankerous in the 10 and 12 MA. This means the red color MA should cross in a higher place the yellowish color MA.
3. As the bullish cantankerous in the moving average takes identify, the position of the cost should exist higher up the MA shade.
4. Check the position of the pin levels drawn by the RCS fibo indicator. The pivot level should be close to the support level.
5. Wait for the germination of the xanthous color arrow marking by the ACS trend alert indicator. The yellow colour arrow gives us the confirmation that the bulls are ready to push the cost higher.
6. Check the Rainbow MMA formation. The green color MAs should be placed below the purple and the blue colour MMA.
7. Yous may open up the new long trade afterwards checking all these factors but keep the risk profile low.

Execution of the long trade

Finish loss

Setting up the end loss is fairly like shooting fish in a barrel while using the Moving Average Rainbow Forex Scalping Strategy For MT4. Set your SL toll beneath the Pivot level or you may use the green band of the Rainbow MMA as a reference point to gear up the Sl.

Take profit

The take profit should exist set by using the nearest resistance level. Merely be cautious since y’all need to maintain a minimum 1:2 adventure to reward ratio. If you trade the M15 time frame, you may rely on the i:3 risk to advantage ratio.

The brusque merchandise setup sequence

In this segment, we will larn to utilize the Moving Boilerplate Rainbow Forex Scalping Strategy For MT4 in a fleck more advanced mode. So, if y’all are planning to trade the M1 time frame, y’all may follow the steps mentioned in this segment.

Weather to execute the short merchandise

1. Select a major currency pair that is already in a downtrend. The boilerplate spread of the asset should be less than 3 pips since you volition be scalping the market.
2. Expect for the bearish cantankerous in the 10 and 12 MA. Every bit the bearish cross takes place, yous should exist able to spot a bearish candlestick pattern.
3. The position of the Rainbow MMA will modify. This mean, the greenish color rainbow ring will be trading over the majestic and blue ring.
4. The Trend ACS alarm indicator should impress a simple purple color arrow higher up the resistance level. The pointer should be placed close to the RCS fibo line.
5. The bars in the MA shade should prove a reversal pattern. Usually, this refers to the germination of grey bars towards the downside.
6. After checking all these essential factors, risk 1% of your upper-case letter before the execution of the brusque trade.

Execution of the short trade

Terminate loss

Since this is an advanced method, we should be using the finish loss using the bearish price action confirmation signal. However, we may also use the nearest resistance level to decide the SL price for the brusk trade.

Take profit

The have profit should be fix to the nearest demand or supply zone. But nosotros should exist cautious well-nigh the risk to advantage ratio. If the hazard to reward ratio is less than ane:2, we should never accept the trades even though the setup might look perfect.

Moving Boilerplate Rainbow Forex Scalping Strategy For MT4 – Useful advice

The Moving Average Rainbow Forex Scalping Strategy For MT4 might take to be used past using some specified guidelines merely feel does have a pregnant bear upon on the trader’southward experience. For instance, you lot should have the ability to clarify the slope of the MA and market sentiment before taking any trades. And so, those who don’t accept enough experience should utilize this system just during the stable hours of the market place.

Moving Average Rainbow Forex Scalping Strategy For MT4 – Conclusion

Every trading organization in the market place has its pros and cons. Earlier you utilise the Moving Average Rainbow Forex Scalping Strategy For MT4, we suggest trading the demo account with the help of this trading method. Once yous get used to the organisation in the demo account, you may trade with real coin. Just recall, this system doesn’t guarantee that you volition always win.

Download the complete system description and the files here: