When trading bounce opportunities from indicators you can say that Rainbow MMA Indicator feels really good in this situation
Rainbow MMA Indicator will show you segment of lines which you can use for Trend prediction, Reversal patterns and bounce from dynamic support/resistance strategies. The Rainbow MMA Indicator is created out of multiple Exponential Moving Averages.
When identifying trend it usually means that when slope of the Rainbow MMA Indicator is high trend is stronger. Or when line are more apart from each other the Trend is Stronger. If lines from the Rainbow MMA Indicator are packed one over another then usually PA is not moving.
Exponential Moving Averages reduce lag by applying more weight to recent prices and therefore its less lagging Indicator then normal Moving Average Indicator. Combining multiple Exponential Moving Averages in one Indicator and you get Rainbow MMA Indicator.
This Indicator for MT4 platform is best used on intra-day trading for example on: 15min timeframe or 5min timeframe. You can use it to trade bounce of the lines into on trend pullbacks or use it to stay out of market when PA is not trending.
One of the better Strategy’s used with this Rainbow MMA Indicator is Towers Scalping Strategy.
This are the available settings for Rainbow MMA Indicator:
How to install Rainbow MMA Indicator in MetaTrader 4 / MT4:
- Download/Copy/Save the MQ4/EX4 file into your C:\Program Files\MetaTrader 4\experts\indicators folder (or change the folder to your installation sometimes forex broker name)
- Restart your MetaTrader 4 application (assuming it’s currently open) … or Launch your MetaTrader 4 application
- On the left hand side, look for the “Navigator” window and under the “Common” tab, look into the “Custom Indicators” section
- Locate the indicator which you have just downloaded into the folder stated in Step 1
- Drag (Click and drag) the indicator onto the chart
- Choose your settings and click OK.
- TADA and your done!