4 Rainbow is a forex trading system. 4 Rainbow is a scalping forex trading system which can be used in swing trading as well. 4 Rainbow is a very simple forex trading system. The 4 Rainbow forex trading system is best for the intermediate level traders and beginner traders. When you scalp using 4 Rainbow forex trading you should focus only on major pairs because you will see relatively higher volatility on majors. But when you make swing trades you can choose any securities. There are four technical indicators in 4 Rainbow forex trading system.
When you install 4 Rainbow forex trading system in your trading platform, your chart should look like this:
- MA shortlines
MA short lines are a technical indicator which is basically nothing more than chunks of moving averages. On the main chart window you can see four moving averages. These moving averages determine the direction of the market. When the market is above these moving averages, they indicate market is bullish, you should be buying. On the other side, when the market is below these moving averages, this indicator indicates that the market is in bearish mode, you should be selling.
Dotted pink moving average is the fastest one and blue one is the slowest one.
- CCI Histogram
CCI Histogram is a technical indicator which is combined form of CCI and histogram. When these bars are in positive territory, you should look for buying opportunities and when these bars are in negative territory, you should be looking for selling opportunities.
Buying Conditions Using 4 Rainbow.
- Market should be up trending.
- Market should be above all the moving averages.
- The CCI Histogram indicator should be in positive territory.
- Place your long position as soon as above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when the market crosses below all the moving averages.
Selling Conditions Using 4 Rainbow.
- Market should be down trending.
- Market should be below all the moving averages.
- The CCI Histogram indicator should be in negative territory.
- Place your short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when the market crosses above all the moving averages.
Download Free Forex Four Rainbow Strategy
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