MA Rainbow Indicator for MT4 (Trend Alert)

The Rainbow Indicator MT4 is a technical indicator that is used by traders to determine the trend of the market. The indicator is based on the principle of the moving average and is calculated by taking the average of the high and low prices Moving Average Method of a certain period of time. The indicator is used to spot the direction of the trend and can be used in different ways to trade the market.

The first way is to use the Rainbow Indicator MT4 as a trend following indicator. In this case, the trader would buy when the indicator shows an uptrend and sell when the indicator shows a downtrend. The second way is to use the Rainbow Indicator MT4 as a reversal indicator. In this case, Hull Moving Average Indicator the trader would buy when the indicator shows a downtrend and sell when the indicator shows an uptrend.

Gaussian MA Rainbow Indicator for MT4

The Rainbow Indicator MT4 is a very popular indicator among traders and is used by many professional traders. The indicator is available for free on the internet and can be downloaded from the internet.

The Rainbow Indicator is a custom MT4 indicator Forex Exponential Moving that is designed to pick out possible trend reversals, by looking for instances where price has made a clear move against the prevailing trend, and then retraced back to test a key level of support or resistance.

• The first is a 7 period Simple Moving Average (SMA), which is used to help smooth out price action and make it easier to identify potential trend reversals.
• The second is a 14 period Relative Strength Index (RSI), Adaptive Moving Average which is used to help confirm whether price is overbought or oversold.

Rainbow Moving Average Indicator System

And the third, and most important, is the Rainbow Histogram. This is what gives the indicator its name, as it consists of a series of coloured bars that correspond to the different SMA and RSI levels. The logic behind the indicator is that when price TSV Indicator starts to move against the prevailing trend (as indicated by the SMA), and then retraces back to test a key level of support or resistance (as indicated by the RSI), there is a good chance that a trend reversal may be about to occur.

The indicator is designed to be used on any time-frame from the 1 minute chart up to the daily chart, although it works best on the 4 hour chart and above.

Multiple Moving Average indicator MT4

One of the great things about the Rainbow Indicator is that Renko Candles Overlay it is very easy to interpret, as there are only three things you need to look for;

The first is the position of price in relation to the 7 period SMA. If price is above the SMA  Volume Flow Indicatorthen it is considered to be in an uptrend, and if price is below the SMA then it is considered to be in a downtrend. The second is the position of price in relation to the 14 period RSI. If price is above the RSI then it is considered to be overbought, and if price is below the RSI then it is considered to be oversold.

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