4X other way
write 20 words summary based on this youtube script without saying in this videoOutriders and welcome to forex other way channel my name is Marya and in this video I’m going to show you how to be in your own rainbow indicator so here we go let’s start then the very beginning moving averages this indicator is built is a really lagging indicator but if you
Put some more of them on the chart you might see that that gives a difference it might give you an edge what I’m going to say you will see just a month let me start up so we’ve started with the first one usually I use this indicator with smooth moving average
Applied to close and I start with 15 15 is all right let’s start with the color the red one usually I use the red one has the first one we’ve got the first moving average period 15 once again smooth applied to close if the zero now
We put the next one the next one we put the period 20 I make a difference each moving average will be 5 bigger the period maybe will grow with 5 so we got when T let’s put another 125 and let’s put another one 30 and 35 here we go so
We’ve got a couple of moving averages a bunch of them it’s not the end Allen we go further change the color make it brighter for example and again five more which makes 40 another one 45 50 and 5555 much number but the next one we change the color
Now we make it orange for arrogance let’s make it orange orange looks like 55 so let’s make it 60 okay and another 65 and so on just give me a couple of seconds 70 all right add up 75 so we stopped over here in the moment change the color again let’s try
Their l1 eighty 85 will be the next one 90 boom 95 is the next one alright so we got a couple of them let’s add up some hundreds change the color like this one all it looks life I’ll go too far one one Oh five let’s put its Oh one two five
Up to 140 did we do over here No one two five one two five so on 130 may we stop 31 3-0 we might add three mark because 144 is another Fibonacci number and moving average 144 I was pretty often or about that and alright so let’s add another three 135 here 140
And 144 I cannot agree I’ve Oh what you could realize over here when the price just get above moving of it pretty often it happens that growing it rises moving averages as well it’s a very useful tool as support and resistant level so anytime you try
To use this indicator you might see that the price stop somewhere binds support like here which on the moving average 100 100 by foot here we go stop hunt their stops has been hunted and the price came back started raising in a situation of a here as soon as the
Price down nested moving average it became resistance 20 I think he’s here and stop hands here and the price dropped we are on a 4-hour chart so a shot and last movement last movement of couple of days which started around 20 20th April as the price got through all
The moving average through all the rainbow dropping and dropping and dropping and it looks like very strong trends develops right now you can realize is a strong trend on those distances between those moving averages when you see when the price let’s let’s have a look over here look look over here which ongoing
My strong growing mark like here there go smoothly they don’t cross each other they are just arranged as it would be and as soon as a staffing starts changing that bunch of averages starts narrowing look here look here what’s happening it started narrowing the narrower it is
The more likely something is going to happen within a couple of candles as you can see here there’s been fake breakthrough the price couldn’t go further we got an inverted hammer here or what is the price went through all the bunch of urges it was so narrow here
You see and it changed the direction it started dropping and maybe maybe a 120 or even lower or one 1850s I’m back and test those moving averages but probably probably we will realize that one of those averages will be considered as resistance point so watch the prices going back here and try to
Find a place to take a proper position it works in all time frames so when you look at 15-minute time frame it’s even even nicer looks fabulous this way doesn’t it well how do we other indicator somewhere if you put air aside stochastic or whatsoever you’d like to
Put over here just to confirm it’s very useful tool with all that what I said at the very beginning that moving average is a lagging indicator I like that that this rainbow might help you to take the right trading decision well that’s it at the moment so I hope it was useful for
You this video even got any question regarding issues presented here please write them in the comments below obviously if you’ve got any other subject you’d like to watch please write write me down in comments as well many more videos in the nearest future so may
The force be with you god bless you and see you next time thank you
How to Use Rainbow Indicator in Forex Trading
Outriders welcome to Forex Other Way channel, in this video, we will learn how to use the Rainbow Indicator in Forex Trading. The indicator is built as a lagging indicator that can give you an edge if you put some more of them on the chart. We will start with moving averages and gradually move towards other indicators to confirm our trading decisions.
Moving Averages – The Starting Point
Moving averages are the backbone of the Rainbow Indicator. Although it is a lagging indicator, it can still be helpful in making trading decisions. We will be using the Smooth Moving Average applied to Close, starting with Period 15. The red color is preferred for the first moving average, and we will continue adding moving averages, with each subsequent period being five more than the previous one.
The steps would be as follows:
– Red color Moving Average with Period 15
– Blue color Moving Average with Period 20
– Yellow color Moving Average with Period 25
– Green color Moving Average with Period 30
– Grey color Moving Average with Period 35
– Bright red color Moving Average with Period 40
– Purple color Moving Average with Period 45
– Deep blue color Moving Average with Period 50
– Pale green color Moving Average with Period 55
– Orange color Moving Average with Period 60
– Light pink color Moving Average with Period 65
– Maroon color Moving Average with Period 70
– Dark green color Moving Average with Period 75
– Light blue color Moving Average with Period 80
– Olive green color Moving Average with Period 85
– Navy blue color Moving Average with Period 90
– Chocolate color Moving Average with Period 95
– Black color Moving Average with Period 100
– Dark red color Moving Average with Period 105
– Magenta color Moving Average with Period 110
– Brown color Moving Average with Period 115
– Dark purple color Moving Average with Period 120
– Lavender color Moving Average with Period 125
– Violet color Moving Average with Period 130
– Teal color Moving Average with Period 135
– Dark grey color Moving Average with Period 140
– Deep pink color Moving Average with Period 144
Support and Resistance Levels
The Rainbow Indicator can also serve as an effective tool to identify support and resistance levels. Whenever the price goes above a Moving Average, it frequently rises, and the Moving Average can act as a support level for the price. Conversely, whenever the price goes below a Moving Average, it often becomes a resistance level for the price.
Trends and Trading Opportunities
The Rainbow Indicator can also help identify trends. The wider the distance between two Moving Averages, the stronger the trend. Whenever the bunch of Moving Averages starts narrowing, it indicates a possible change in direction in the price. Taking a position at this point can be advantageous as the narrowing of the Moving Averages indicates that something is likely to happen within a few candles.
Confirmation with Other Indicators
While the Rainbow Indicator can be helpful, it is still a lagging indicator, and it is advisable to use it in combination with other indicators. You can use indicators such as Stochastic or any other that you prefer to confirm your trading decision based on the Rainbow Indicator.
Conclusion
In conclusion, the Rainbow Indicator is a useful tool for Forex trading. It can help identify support and resistance levels, trends, and trading opportunities. Although it is a lagging indicator, it can still provide an edge if used effectively. It is advisable to use it in combination with other indicators to confirm trading decisions. If you have any questions regarding the Rainbow Indicator or any other subject, feel free to write them in the comments below.
