The Rainbow Bars indicator is a specialized algorithm for the MT4 trading platform. Using the described algorithm, you can quite easily and quickly assess the situation that has developed on the chart of the selected asset and identify the optimal places for creating successful positions.
The described algorithm consists of five moving averages, which are displayed on the trading chart. The intersection of its curves should be taken as a signal for creating positions. Such signals are extremely simple and clear, due to which even beginners who have practically no trading experience can effectively use the described algorithm. Due to the fact that the Rainbow Bars indicator has a high level of versatility, the signals it generates retain an acceptable level of accuracy on almost any currency pair and time interval.
To download the Rainbow Bars indicator, use the link that you can see below.
Rainbow Bars indicator. Optimization
The installation procedure for the considered algorithm is simply elementary. You do not need any special skills or experience to complete this task. After starting the described algorithm, a window with its parameters will appear in front of you.
The considered algorithm has the following parameters:
- “Period-MA1”. This parameter is responsible for the period of the first curve included in the described algorithm.
- “Period-MA2”. In this field, you can set the period of the second curve, which is integrated into the considered algorithm.
- “Period-MA3”. This parameter is responsible for the period of the third curve included in the described algorithm.
- “Period-MA4”. In this field, you can set the period of the fourth curve, which is integrated into the considered algorithm.
- “Period-MA5”. This parameter is responsible for the period of the fifth curve included in the described algorithm.
Also, in the settings of the described algorithm, you can change the style, thickness and shade of all curves displayed on the trading chart. Due to the fact that the described algorithm has only five adjustable parameters that affect the correctness of its functioning, not only a speculator with some experience, but also a beginner who is just getting acquainted with the foreign exchange market can handle the optimization process quite easily.
It is extremely simple to use the considered algorithm for making money in the foreign exchange market. You will need to transfer the described algorithm to the chart of the asset you have chosen and optimize it. Then you just need to wait for the next signal to appear and create a position in the desired direction.
As soon as the red curve from above crosses the first two curves, you need to create a sell position. This trade should be closed promptly after the red curve changes direction.
At the moment when the red curve from below intersects the first two curves of the described algorithm, you should create a buy position. This deal must be closed promptly after the red curve changes the direction of its movement. To reduce the likelihood of losses, the described algorithm should be combined with additional tools.
To learn how to correctly optimize and apply the algorithm in question, use a demo account. Only after accumulating a sufficient amount of experience and skills, you can start trading for real money.