The rainbow forex strategy is a remarkable versatile trading system that combines three indicators for its signal triggers i.e. the HMA_v2, Forex Analyzer Pro and the RainbowMMA_09 custom indicator.
MetaTrader4 Indicators: HMA_v2.ex4 (color modified), Forex Analyzer Pro (default setting), RainbowMMA_09.ex4 (default setting)
Preferred Time Frame(s): 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours
Recommended Trading Sessions: Any
Currency Pairs: any
Buy Example (click the image for full size):
Long Entry Rules:
Enter a long position when the following conditions or rules are in place:
- If the Forex Analyzer Pro custom indicator forms a green upward pointing arrow that is aligned below prices bars, it means that there’s an upward price pressure and a buy should be initiated.
- The RainbowMMA_09 custom indicator intersects the blue dots of the HMA_v2 custom indicator, a signal that price is about to push higher.
Always consider this signal at points where the Forex Analyzer Pro’s arrow forms just beneath the intersection point of the RainbowMMA_09 and HMA_v2 custom indicator.
Stop Loss for Long Entry: Place stop ≥ 25 pips from entry price.
Exit Strategy/Take Profit for Long Entry
The following conditions should inform your exit or take profit move:
- If the Forex Analyzer Pro forms a red downward pointing arrow that is aligned above prices bars, it denotes that bullish momentum is diminishing and an exit and/or take profit should be initiated.
- If the tomato colored dots of the HMA_v2 custom indicator gets in contact with the RainbowMMA_09 custom indicator lines, this indicator pattern is indicative that a reversal is underway and as such an exit and/or take profit is strongly recommended.
Sell Entry Rules
The following chart/indicator patterns will define a sell entry base on the following conditions:
- When the Forex Analyzer Pro red downward pointing arrow forms above price bars, it shows that downward pressures are being introduced into the market and bears are having their way.
- Watch the tomato colored dots of the HMA_2 cross the lines of the RainbowMMA_09 custom indicator – this is a sell signal.
Stop Loss for Sell Entry: Place stop loss ≥ 25 pips from entry price
Exit Strategy/Take Profit for Sell Entry
The following conditions will define an exit or take profit strategy for a sell entry:
- If the green upward pointing arrow of the Forex Analyzer Pro forms below price bars, we should be ready to exit and/or take profit from such position(s).
- The dotted lines of the HMA_v2 turns blue and gets in contact with the lines of the RainbowMMA_09 custom indicator.
About The Trading Indicators
The HMA_v2 custom indicator is a dotted line indicator that changes the color of its dots to trigger buy or sell signals.
The RainbowMMA_09 is the 9th GMMA forex indicator is a series of eleven technical studies that is purely based on the Guppy multi moving average.
The Forex Analyzer Pro is a versatile forex signal indicator that deliver accurate alerts via its arrow and also draws support and resistance levels on the activity chart.