How Do You Use Rainbow Charts MT5 Technical Indicator?
Rainbow Charts Technical Indicator Technical Analysis & Rainbow Charts Buy & Sell Signals
Developed by Mel Widner
Rainbow Charts technical indicator is a forex trend following forex technical indicator, similar to the moving averages forex technical indicator - Rainbow Charts technical 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 technical indicator. The first moving average is the basis of the Rainbow Charts technical 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 MT5 Rainbow Indicator on MetaTrader 5 Charts
How to Generate Buy and Sell Signals
Upward Forex Trend
When the forex trend is bullish upwards forex trend - then the Rainbow Charts technical indicator will be moving upwards, the least smoothed line will be at the top of the Rainbow Charts technical indicator - the red line and the major smoothed line will be at the bottom of the Rainbow Charts technical indicator - the violet line.
Downward Forex Trading Trend
When the forex trend is bearish downwards forex trend then the Rainbow Charts technical indicator will be moving downwards, the major smoothed Rainbow Charts technical indicator line (Violet Line) will be at the bottom and the least smoothed Rainbow Charts technical indicator line (Red Line) will be at the top of the Rainbow Charts indicator.
Bullish Forex Trend and Bearish Trend Rainbow Charts Technical Indicator
Forex Trend Continuation Signal
As the forex trend continues in one direction upwards or downwards - the Rainbow Charts technical indicator follows the forex price closely - the more the forex price moves away from the Rainbow Charts technical indicator the more the forex trend direction is likely to continue - this is interpreted as a forex trend continuation signal. The Rainbow Charts technical indicator lines will also continue to expand in width - this is also another forex trend continuation signal.
Forex Trading Trend Reversal Signal
When forex price starts moving towards the Rainbow Charts technical indicator - then this is interpreted as a forex trend reversal signal. The width of the Rainbow Charts technical 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 technical indicator lines and the direction of the Rainbow Charts technical indicator also reverses in their respective direction.
How to Add MT5 Rainbow Charts Indicator on MetaTrader 5 Charts
Step 1: Open MetaTrader 5 Software Navigator Window Panel
Open MetaTrader 5 Navigator window as shown below: Go to "View" menu (click), then select "Navigator" window (click), or From Standard Tool Bar click the "Navigator" button or press keyboard MT5 shortcut keys "Ctrl+N"
On MT5 Navigator window, select "Indicators", by Double Clicking
How Do You Use MT5 Rainbow Charts Indicator?
How to Add Rainbow Charts MT5 Indicator
Expand the menu by clicking the expand button (+) or double click the "indicators" menu, after this the button will appear as (-) and will now display a list of MT5 technical indicators as shown below - choose the Rainbow Charts indicator from this list of MT5 technical indicators so that you can add the Rainbow Charts MT5 technical indicator on the MT5 forex chart.
How Do You Use MT5 Rainbow Charts Indicator?
How Install and Add Custom Rainbow Charts Indicator on MetaTrader 5?
If the MT5 indicator that you want to add on the MT5 charts is a custom MT5 indicator - for example if the Rainbow Charts technical indicator that you want to add is a custom MT5 indicator you will need to first add this custom Rainbow Charts MT5 technical indicator on the MT5 platform and then compile this custom Rainbow Charts indicator so that this newly added Rainbow Charts MT5 forex custom indicator appears on the custom forex indicators list on the MT5 platform.
To learn how to add Rainbow Charts indicators in MT5 - how do you add Rainbow Charts indicator window to MT5 platform? - how do you add Rainbow Charts forex custom indicator on MetaTrader 5? - How to add a custom Rainbow Charts custom technical indicator on MetaTrader 5.
How Do You Use MT5 Rainbow Charts Indicator?
