How to Add Rainbow Indicator in MT4 Charts - Adding MT4 Rainbow CFDs Chart Indicator
Step 1: Open Navigator Window Panel on CFD Trading Software
Open Navigator window panel as illustrated below: Navigate to 'View' menu (click on it), then select 'Navigator' window panel (click), or From Standard Toolbar click the 'Navigator' button key or press keyboard shortcut key 'Ctrl+N'
On Navigator window, choose 'Technical Indicators', (Double-Click)
How to Add Rainbow Indicator in MT4 - MT4 Rainbow Technical Indicator
Step 2: Expand the Indicators Menu on the Navigator - Adding Rainbow MT4 Chart Indicator
Expand the menu by clicking the expand button marker (+) or double click the 'indicators' menu, after this the button will appear as (-) and will now display a list as shown below - select the Rainbow cfds chart indicator from this list of cfds indicators so as to add the Rainbow cfds indicator on the cfd chart.
How to Add Rainbow Indicator - From the Above window you can then place Rainbow indicator that you want on the CFDs chart
How to Add Custom Rainbow Indicator to MT4
If the technical indicator you want to add is a custom indicator - for example if the Rainbow technical indicator you want to add is a custom indicator you will need to first add this custom Rainbow indicator on the MetaTrader 4 software & then compile the custom Rainbow indicator so that the newly added Rainbow custom indicator pops up on the list of custom indicators in MetaTrader 4 software.
To learn how to install Rainbow indicators on MT4, how to add Rainbow indicator window to MT4 and how to add Rainbow custom indicator in MT4 - How to add a custom Rainbow cfd indicator in MetaTrader 4.
About Rainbow Technical Indicator Explained
Rainbow Charts Technical Analysis and Rainbow Charts Trading Signals
Developed by Mel Widner
This is a trend following indicator, similar to the moving averages - it is plotted using a 2 period simple moving average. The moving average is then smoothed to create a total of ten moving averages. The first moving average is the basis, then the next moving average is calculated using the first one, the third is then calculated using the second one and so on. This forms a rainbow shape of the cfds trend, each moving average is applied with a different colors so as to look as a rainbow.
CFDs Technical Analysis and Generating Trading Signals
Bullish CFDs Trend/ Upwards CFD Trading Trend
When the trend in the cfds market is Upward/bullish trend, then the rainbow will be moving upwards, the least smoothed line will be at the top of the indicator, this is the red line and the major smoothed line will be at the bottom of the indicator, this is the violet line.
Bearish Market/Downward CFDs Trading Trend
When the CFDs trend is a bearish downward then the rainbow charts will be heading downwards, the major smoothed line (Violet) will be at the bottom and the least smoothed line (Red) will be at the top.
CFD Trading Trend Continuation Trading Signal
As the trend continues in one direction up or down, the rainbow charts follow the price closely. The more the price moves away from the rainbow chart the more the trend is likely to continue, this is considered as a trend continuation signal. The indicator lines will also continue to expand its width; this is also another trend continuation signal.
CFD Trading Trend Reversal Trading Signal
When price starts moving towards the rainbow charts then this is seen as a trend reversal signal. The width of the indicator lines also contracts signifying a trend reversal signal. The reversal Signal is confirmed when the price penetrates through all the rainbow charts and the direction of the rainbow charts also reverses in their respective direction.
