The Rainbow Bars 2 trend trading indicator is a very effective method of using a ribbon of moving averages with the function of coloring bars based on the trend.
The Rainbow Bars 2 trend trading indicator is another interpretation of the moving average ribbon.
The Rainbow Bars 2 indicator shows the divergence of five moving averages relative to each other, while the stronger the divergence, the richer the color of the candles:
- upward divergence of MA – from yellow to red;
- downward divergence of MA – from blue to dark blue.
The meaning of the Rainbow Bars 2 indicator is as follows:
- as soon as MA1> MA2 – a weak positive divergence of the indicator appears;
- as soon as MA1> MA2 and MA2> MA3, a stronger positive divergence of the indicator appears;
- as soon as MA1> MA2 and MA2> MA3 and MA3> MA4 – there is an average positive divergence of the indicator;
- as soon as MA1> MA2 and MA2> MA3 and MA3> MA4 and MA4> MA5, a strong positive divergence of the indicator appears;
- as soon as MA1 <MA2, a weak negative divergence of the indicator appears;
- as soon as MA1 <MA2 and MA2 <MA3, a stronger negative divergence of the indicator appears;
- as soon as MA1 <MA2 and MA2 <MA3 and MA3 <MA4 – there is an average negative divergence of the indicator;
- as soon as MA1 <MA2 and MA2 <MA3 and MA3 <MA4 and MA4 <MA5 – there is a strong negative divergence of the indicator.
The Rainbow Bars 2 trend trading indicator is equally effective on both regular and Renko charts. In the settings, you can set the thickness of colored bars – in order to be able to accurately fit them to the thickness of the symbol bars, depending on the scale of your chart.
Features of Rainbow Bars 2 MT4 indicator
- Platform: Metatrader 4
- Ability to change settings: Yes
- Timeframe: any from 1 Minute to Daily
- Currency pairs: any
In Rainbow-Bars-2.zip file you will find:
- Rainbow Bars 2.ex4
Download Rainbow Bars 2 MT4 indicator for free:
