How Do You Use Rainbow Charts MT4 Technical Indicator?
Rainbow Charts Indicator Technical Analysis Buy & Sell Signals
Developed by Mel Widner
Rainbow Charts indicator is a forex trend following forex indicator, similar to the moving averages forex indicator - Rainbow Charts indicator is drawn using a 2 period simple moving average. The moving average is then smoothed to create a total of ten forex moving averages - Rainbow Charts indicator. The first moving average is the basis of the Rainbow Charts indicator, then the next moving average is calculated using the first one, the third moving average is then calculated using the second one and so on. This forms a rainbow shape of the forex price trend, each moving average is applied with a different color so as to resemble a rainbow - Rainbow Charts indicator.
How to Add MT4 Rainbow Technical Indicator in MetaTrader 4 Charts
How to Generate Buy & Sell Signals
Upward Forex Trading Trend
When the forex trend is bullish upward forex 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 and the major smoothed line will be at the bottom of the Rainbow Charts indicator - the violet line.
Downwards Forex Trend
When the forex trend is bearish downward forex 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 Forex Trend and Bearish Trend Rainbow Charts Indicator
Forex Trading Trend Continuation Signal
As the forex trend continues in one direction upward or downward - the Rainbow Charts indicator follows the forex price closely - the more the forex price moves away from the Rainbow Charts indicator the more the forex trend direction is likely to continue - this forex trading signal is analyzed as a forex trend continuation signal. The Rainbow Charts indicator lines will also continue to expand in width - this is also another forex trend continuation signal.
Forex Trend Reversal Signal
When forex price starts moving towards the Rainbow Charts indicator - then this forex trading signal is analyzed as a forex trend reversal signal. The width of the Rainbow Charts indicator lines also contract and this is also another forex trend reversal signal. The forex trend reversal signal is confirmed when the price penetrates through all the Rainbow Charts indicator lines and the direction of the Rainbow Charts indicator also reverses in their respective direction.
How to Add MT4 Rainbow Charts Technical Indicator in MetaTrader 4 Charts
Step 1: Open MT4 Platform Navigator Panel
Open MetaTrader 4 Navigator window as shown below: Go to 'View' menu (click), then select 'Navigator' window (click), or From Standard Toolbar click the 'Navigator' button or press keyboard MT4 shortcut keys 'Ctrl+N'
On MT4 Navigator window, select "Indicators", by Double Clicking
How Do You Use MT4 Rainbow Charts Technical 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 forex chart.
How Do You Use MT4 Rainbow Charts Technical 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 forex custom indicator appears on the custom technical indicators list on the MetaTrader 4 platform.
To learn how to add Rainbow Charts indicators on MT4 platform - how do you add Rainbow Charts indicator window to MT4 platform? - how do you add Rainbow Charts forex custom indicator on MT4 platform? - How to add a custom Rainbow Charts custom forex indicator on MetaTrader 4.
How Do You Use MT4 Rainbow Charts Technical Indicator?
