Rainbow Forex Scalping Strategy http://www.financial-spread-betting.com/course/technical-analysis.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE Rainbow scalper strategy. All I’ve done is drawn 3 exponential moving averages; one is length 6, the other is length 14 and the last one is length of 26. When price stars to push in the direction the fan will open out. The rainbow indicator will have a few more moving averages in there but generally speaking the idea is that we’ll waiting for the price to pull back towards the cluster of the moving averages. You have a band where you want price to enter. This is a trade to be used on major forex pairs to keep spreads tight and 15-minute charts. You are trying to buy a pullback timed with these rainbow moving averages spreads and you’re looking for another criteria to take the long. The third filter is that you must have 3 consecutive lower highs. The third is most important as its going to be our signal candle; as the price breaks above that candle we are going to go long and our stop will be 1 ATR of the timeframe we are trading.

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Great stuff! I love hearing about specific plays like this, thanks much for putting this together. I would love to see more video's of this nature.

This is like William's alligator indicator.

I've often used versions of this — really easy way to get a quick read of trends, retraces, and rough wave count at a glance. A lot of versions of the multiple moving average system will use some kind of fibo sequence or simple arithmetic addition. As Mark says, traders are free to try whatever input periods they want.

What I found helped me most was to space out my MAs such that each MA is half as sensitive or twice as sensitive as the next nearest MA — a simple geometric sequence instead of arithmetic sequence. Nothing fancy! Example is: 13, 25, 50, 100, 200, 400, 800, 1600. That's a 2x multiplier. You could do 3x or 4x or even just 1.5x. Why such large and slow MAs? The longer periods effectively provide a multiple timeframe analysis on the same chart. An MA 13 on H1 * 60 = 780, which is very close to an MA 800 on M1; MA 25 on H1 is MA 1560 on M1. So you can be primarily looking for trade setups on M1, but you can still see roughly where the H1 MA 13 and 25 are.

Also, with the exception of certain very common inputs like the D1 EMA 20, 50, and 200 (maybe 13 and 55 too?), there are no magic benefits to using any particular EMA period. An EMA 10, 11, 12, or 13 are all fairly close to each other. You'd need at least an arithmetic sequence like 10, 20, 30, 40, 50 to see meaningful gaps between the MAs that help you to find/feel trend strength acceleration/deceleration. You don't have to believe me, and maybe I'm wrong! Try setting up a multi MA rainbow of fibo periods: 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181. That should be enough periods to keep most fibo enthusiasts happy.

Then randomly add or subtract 10% from each period, and see how much that does/doesn't affect your reading of the chart. EVERY MA of any period will sometimes act as dynamic SR, and sometimes act as a momentary notional fair value for price (meaning price will exhibit mean reversion behavior with measured moves over/under the MA).

These observations do not exactly apply to more esoteric MA variations like KAMA, FRAMA, FRASMA, Ocean NMA, VIDYA/VMA, etc. Due to the noise filtering functions and dynamic period inputs internally calculated by those MAs, you may need an exponential or other sequence of input periods to get visibly equidistant MAs.

Aprreciate your work and what you're doing here. But it would be nice to see also more swing trading strategies for us working people, having their day jobs. I don't know what's your experience on the subject but I have a feeling that more people are doing this after work than day trading or scslping. I could be wrong though ðŸ™‚ Thanks anyway for you're effort, best regards

This, combined with supply and demand seems to be working for me at the moment. Don't know about the future.

as a bill williams fan i could call that trading the alligator XD wich is the same thing, just a triple moving average wich shows very well the 2 main reversal waves that most of trends do, when market is clearly showing a movement fiting the psicology theory around long trends.

lately i found some people talking about how much simplifys the whole bill williams aproach just by doing this strategy and taking 1 ATR every signal, is the general idea i found in my hundreds of hours diging into google about balance lines and such.

stay tuned!

Not 1st. (LOL)

I like this strategy less risk and I am happy with small but consistent profits your videos are very informative and insightful thanks a million