How Do You Use Rainbow Charts MetaTrader 4 Indicator?
Rainbow Charts Indicator Analysis Buy & Sell Signals
Developed by Mel Widner
Rainbow Charts is a trend following indicator, similar to the MAs indicator - Rainbow Charts is drawn using a 2 period simple Moving Average. The MA is then smoothed to create a total of ten MAs - Rainbow Charts indicator. The first MA is the basis of the Rainbow Charts, then the next Moving Average is calculated using the first one, the third MA is then calculated using the second one and so on. This forms a rainbow shape of the price trend, each MA is applied with a different colour so as to resemble a rainbow - Rainbow Charts indicator.
How to Add MT4 Rainbow Indicator in MetaTrader 4 Charts
How to Generate Buy and Sell Signals
Upward Trend
When the trend is bullish upward trend - then the Rainbow Charts indicator will be moving upward, the least smoothed line will be at the top of the Rainbow Charts indicator - the red line & the major smoothed line will be at the bottom of the Rainbow Charts indicator - the violet line.
Downwards Trend
When the trend is bearish downward trend then the Rainbow Charts indicator will be moving downward, the major smoothed Rainbow Charts indicator line (Violet Line) will be at the bottom and the least smoothed Rainbow Charts indicator line (Red Line) will be at the top of the Rainbow Charts indicator.
Bullish Trend & Bearish Trend Rainbow Charts Indicator
Forex Trend Continuation Signal
As the trend continues in one direction upward or downward - the Rainbow Charts indicator follows the price closely - the more the price moves away from the Rainbow Charts indicator the more the trend direction is likely to continue - this signal is analyzed as a trend continuation signal. The Rainbow Charts lines also will continue to expand in width - this is also another trend continuation signal.
Forex Trend Reversal Signal
When price starts moving towards the Rainbow Charts indicator - then this signal is analyzed as a trend reversal. The width of the Rainbow Charts lines also contract and this is also another trend reversal. The trend reversal signal is confirmed when the price penetrates through all the Rainbow Charts lines and the direction of the Rainbow Charts also reverses in their respective direction.
How to Add MT4 Rainbow Charts Indicator in MT4 Charts
Step 1: Open MetaTrader 4 Navigator Panel
Open MT4 Navigator panel as illustrated below: Go to 'View' menu (click), then select 'Navigator' panel (click), or From Standard Tool-Bar click 'Navigator' button or press keyboard MT4 short-cut keys 'Ctrl+N'
On MetaTrader 4 Navigator window, select "Indicators", by DoubleClick
How Do You Use MetaTrader 4 Rainbow Charts Indicator?
How to Add Rainbow Charts MT4 Indicator
Expand the menu by clicking the expand button (+) or double click the 'indicators' menu, after this the button will appear as (-) and it will then display a list of MT4 indicators as shown below - choose the Rainbow Charts technical indicator from this list of MT4 indicators so that you can add the Rainbow Charts MT4 indicator on the MT4 chart.
How Do I Use MT4 Rainbow Charts Indicator?
How to Install and Place Custom Rainbow Charts Indicator MetaTrader 4
If the MT4 indicator that you want to add on the MT4 charts is a custom MetaTrader 4 indicator - for example if the Rainbow Charts indicator that you want to add is a custom MT4 indicator you will need to first add this custom Rainbow Charts MT4 indicator on the MT4 platform and then compile this custom Rainbow Charts technical indicator so that this newly added Rainbow Charts MT4 custom indicator appears on the custom technical indicators list on the MT4 platform.
To learn how to add Rainbow Charts indicators on MT4 software - how do you add Rainbow Charts indicator window to MT4 software? - how do you add Rainbow Charts custom indicator on MT4 software? - How to add a custom Rainbow Charts custom indicator on MT4.
How Do I Use MetaTrader 4 Rainbow Charts Indicator?
