You can now download Rainbow EMA MT4 Forex Day Trading Strategy for free on AtoZ Markets indicators gallery.
Rainbow EMA Forex Day Trading Strategy uses a moving average based indicator that has several lines. These lines can be seen as a visible area in a market that is trending.
Pullbacks are minor reversions of the average price. The Rainbow MA area becomes a prime place for price to pullback. If a trend is strong enough to continue its current direction, it will pullback immediately. The Rainbow MA is a powerful tool for identifying entry points in market conditions that are trending.
Indicators:
- RainbowMMA_09 (Sky Blue)
- RainbowMMA_10 (Gold)
- 50 EMA (Magenta).
Timeframe: m5 chart
Currency Pair: any pair (major)
Trading Session: London or New York session
Want to trade with this strategy? Start with any of these AtoZ Markets approved forex brokers:
How to use Rainbow EMA MT4 Forex Day Trading Strategy
Setup rules for buy (long) trades
Entry
- Rainbow MAs should not be lower than 50 EMA
- The Rainbow MA should be the benchmark for price
- Rainbow MAs are to be admired.
- Wait for the price to be retraced and then close within Rainbow MAs
- As soon as the price is back above the Rainbow MAs, you can place a buy-market order
Stop Loss
- Place the stop loss at the lower end of the entry candle
Exit
- As soon as the price moves back, close the trade and it is within the Rainbow MAs
Setup rules for Sell (Short Trade)
Entry
- Rainbow MAs should not exceed 50 EMA
- The Rainbow MAs should be considered the price point.
- Rainbow MAs are to be admired.
- Wait for the price to be retraced and then close within Rainbow MAs
- As soon as the price is back below the Rainbow MAs, you can place a sell order
Stop Loss
- Place the stop loss at the top of the entry candle.
Exit
- As soon as the price moves back, close the trade and it is within the Rainbow MAs
How to download and install an indicator
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on the “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into the MT4>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select the “Rainbow EMA Forex Day Trading Strategy” template to apply it on the chart.
Note: This indicator was developed by Mark. AtoZ Markets does not carry any copyrights over this trading tool.
Should you trade with Rainbow EMA MT4 Day Trading Strategy on your own at all?
Before you start trading with this startgey, you'll want to read this.
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