Rainbow Strategy: Reliable Entry into the Market
Many newcomers, for an incomprehensible reason, have a firm belief that the complexity of the strategy is a guarantee of its quality. The Rainbow weekly trading system is a clear example of this belief being false.
Judge yourself - to work on the basic version of the strategy will need only 3 moving averages and everything. No smart user algorithms, complex calculations, builds, pattern search, and so on - only 3 MA. In general, simplicity in trading is only welcome, as an example of this can be cited strategy "Sniper," which also does not differ by complexity, but gives accurate inputs.
In terms of application, this system works not only on the foreign exchange market, but also on binary options. In principle, there is no difference in the schedule, the difference is only that in the case of options we do not have the opportunity to manually close the transaction, but we will talk about choosing the export deadline later.
Is there a desire to get in your hands a simple and reliable tool for earning? Welcome! Let 's look at this strategy from A to I.
Press the "study" button, get into your hands a really easy and profitable strategy.
Investors of different generations faced the concept of indicators on the financial exchange. An assistant with whom an overwhelming number of traders are introduced at the beginning of their career is called the moving average indicator. The financial instrument under study became the basis of advanced advisers and trading models. One of the first ways of earning, based on the Moving Average that appeared on the financial exchange, was the Alligator indicator. Alligator exhausted himself, and went out in the summer, but what was the surprise when Rainbow 's strategy appeared on the trader 's skyscraper.
Determined to test the technique under investigation, it was primarily interesting how often Rainbow 's strategy delivers quality signals, and whether it is really so good. myforex market is filled with trade techniques, we are interested in how Rainbow 's strategy for binary options will show itself.
At the beginning of the operation, it is necessary to install three exponential moving averages to the МТ4 terminal, abbreviated as EMA indicator. It is worth noting, depending on the personal currency system, there are different settings Moving Average. There are such, 6, 14, 24, or 7, 14, 21. By experimenting with AI parameters, you must understand them well and understand for what purpose it is done. Classical and the most common parameters are considered 6, 14, 26.
The method is multi-currency, proposed for use on timeframes older than М1 to infinity. The binary options interval is М1 considered optimal. The best results come when working with high-strength assets. At your discretion, we suggest adding Moving Average with a period of 50.
The rainbow weekly trading system uses each AI for a certain purpose. Fast sliding with period 6 is used to determine the direction of the trend line. Its intersection of slower muwings, is the basis of the origin of the trend. The notion of a trend for the mode of income in question is more relevant than ever. The Rainbow forex trading strategy can be applied exclusively during trending movement, in another way it will not be possible to get a profit.
Remember the Alligator signals of the open flock? In the stock exchange model studied, the existence of the trend is determined similarly, at the moment of divergence of the AI to the distance from each other, must be directed up or down. An additional filter that will indicate the presence of an upward or downward trend is recommended to use EMA 50. It is the divergence of faster lines and the slowest that will be the message of a trend in the market. When the muvings are spun into a single tangle the rainbow strategy of trade symptoms cannot serve.
The optional filter you can use is Average True Range. This tool determines the average candle size for the selected period. The ATR value is greater than the ЕМА6 between the ЕМА26 and the market, indicating a narrowing of the range of trade, and therefore the completion of the trend movement.
The Rainbow strategy entry points are defined as follows. Let 's say you made sure there was a trend on Forex 's chart. The AI are spaced apart from each other and directed up, the ATR indicator has a value at points less than the distance between the muvings. Rainbow 's strategy for binary options analyzes fluctuations and kickbacks in trend motion to enter the position. ЕМА14 and ЕМА26 serve as lines of support and resistance, as well as points from which to open the Forex warrant. If the value of the traded asset concerns the average muwing with parameter 14, a buy or sell signal is received.
There are cases, the exchange rate of the currency pair did not stop, but continued the movement, and reached the ЕМА26. At this point, we recommend adding to an already open item. Earning from such a technique, special attention should be paid to the size of myforex lot. It must not exceed 1% of the deposit.
The investigated method of investment, I would like to supplement another tool of technical analysis Forex. We offer to use additional Relative Srength Index. The ability of RSI to determine the trend in the market is a qualitative function of the index. The rainbow strategy will be more profitable if supplemented by proposed modifications. The RSI indicator will help not only to determine the presence of a trend, but will also tell the place of its reversal.
We will need to apply standard levels 30 and 70 to the indicator. It is strongly not recommended to enter by moving average signals when the RSI is in the critical zone. Rainbow 's strategy for binary options during historical testing showed the best buying or selling positions, came when RSI is near levels 60 and 40 respectively. A value of 50, or crossing a level 50 line, generally does not give reason for opening a deal.
Let 's take stock of what we 've written. In work it is necessary to apply 4 moving averages of EMA6, EMA14, EMA26, EMA50 and also 2 assistants to RSI and ATR. A trading moment occurs if:
Trend formed on the chart;
All Moving Average diverge in different directions and are directed up or down;
The value of the ATR indicator is less than the distance between the ЕМА6 and the ЕМА26 at the points;
The RSI line is not in an overbought or oversold zone;
The transaction opens in the direction of the trend at the time of ЕМА14 or ЕМА26 touch;
Close the position when crossing a slower ЕМА6 ЕМА14.
Rainbow 's strategy for binary options in the study showed as good results as in Forex market analysis. Regardless of the trader site used, the operating rules and indicator settings remain unchanged. Rainbow myforex, like Rainbow options looks particularly attractive when muvings are painted in different colors. Taking into account the modifications, there was another technique on the basis of moving averages, supplemented by indicators.
It differs Rainbow 's forex trading strategy from others by having quality signals. The use of this tool does not avoid the need to understand the situation and understand the working principles of the assets in question. All elements are standard, included in the terminal MT4 and with little effort, will help to achieve good trading results.