Watch My Blue Rainbow | Forex Factory

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Watch My Blue Rainbow

  • #1
  • First Post: Edited Aug 29, 2007 1:16am Aug 26, 2007 10:56pm | Edited Aug 29, 2007 1:16am
First of all, I would like to thank Linuxtroll for his information regarding trading the rainbow. An experienced trader like him deserves credit where it is due.

The beauty of the rainbow is its subjectivity. We may all see different entries based off the rainbow in the light of our own personal history of what we've experienced in our trading past. You begin to recognize what entails a trending and consolidating market. This all comes with time.

By no means am I an expert here, and thus the purpose of this journal is for me to perfect the rainbow until I trade it profitably day after day, week after week, and year after year. I will include information on a $2000ish dollar account that I have after each week, to show my progress along the way.

On my 5 SECOND-1 MINUTE chart:

WMA's (24-144 in intervals of 6)
Average Price

MY S/L IS 10 pips + spread.

ANY MAJORS will be the currencies traded

I am not here to teach you, I am here to help you learn on your own.

If you have questions, please ask I consider myself a nice guy.

Feel FREE to contribute in a positive way, as much as I like talking to myself all day...
  • #2
  • Edited 11:18pm Aug 26, 2007 11:00pm | Edited 11:18pm
Short @ 234.13

S/L = 234.28

EDIT: Exit @ 234.11 for +2 pips

To post every trade would be tedious, so each day I think I will post a good winner and a loser. And at the end of every week I will show how my account is doing
Attached Image
  • #3
  • Aug 27, 2007 1:22am Aug 27, 2007 1:22am
I know it will be ~20++ trade per day with this...
So you can always use higher time frame to capture all trade, for the day.

I still cant see anything with the rainbow ......
err how do i change the colour of the WMA in oanda ?
  • #4
  • Aug 27, 2007 12:51pm Aug 27, 2007 12:51pm
Syafi,

On your chart, right click on the WMA (the line itself, not what's listed in the top left corner) that you wish to change the color of and select it from there.
I came, I saw, I conquered [your pips]. -- Julius Caesar
  • #5
  • Aug 27, 2007 9:04pm Aug 27, 2007 9:04pm
Thank you........

yesterday & today is no so good day for me because connection to US West coast is so bad...... I cannot connect to EFX server. all my other broker work..... Oanda, MIG....... sa sad as I only trade in EFX now..
  • #6
  • Aug 28, 2007 11:36pm Aug 28, 2007 11:36pm
Long EUR/JPY @ 155.56
S/L = 155.38
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_44.png Size: 53 KB
  • #7
  • Aug 29, 2007 12:13am Aug 29, 2007 12:13am
Really looking forward to following your
progress Kevin!

  • #8
  • Aug 29, 2007 12:42am Aug 29, 2007 12:42am
Quoting kharvell
Long EUR/JPY @ 155.56
S/L = 155.38
maybe late entry but it will work

you know kharvell

I remember I saw a similar method in some book that I dont remember it's title but I guess the writer was ross

the method uses also moving averages
two 40 SMA the first applied to the Highs and the second applied for the Lows

those two SMAs makes a channel
for long entry wait for price to close above the channel but dont enter
then wait for the first bar that makes lower low
on the break of the high of this bar you enter long

and vice versa for the short entry

dont enter when the price moves inside the channel

I use it on 5M/15/30 with some price action successfully

I dont want to disturb your thread
just trying to help my friend

I attached the chart of the EJ with this method, it gives clear long @ 155
Attached Image (click to enlarge)
Click to Enlarge Name: ej.gif Size: 14 KB
  • #9
  • Aug 29, 2007 12:47am Aug 29, 2007 12:47am
Quoting FXSurfer
Really looking forward to following your
progress Kevin!

Thank you sir

Last trade stopped out for -21 pips Flat as a pancake...
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_45.png Size: 56 KB
  • #10
  • Aug 29, 2007 12:39pm Aug 29, 2007 12:39pm
Quoting benssol
maybe late entry but it will work

you know kharvell

I remember I saw a similar method in some book that I dont remember it's title but I guess the writer was ross

the method uses also moving averages
two 40 SMA the first applied to the Highs and the second applied for the Lows

those two SMAs makes a channel
for long entry wait for price to close above the channel but dont enter
then wait for the first bar that makes lower low
on the break of the high of this bar you enter long

and vice versa for the short entry

dont enter when the price moves inside the channel

I use it on 5M/15/30 with some price action successfully

I dont want to disturb your thread
just trying to help my friend

I attached the chart of the EJ with this method, it gives clear long @ 155
Hey benssol,

Thanks for your post mate. I have tried a fair share of cross systems, and they get butchered during consolidating markets. Although if you were to aim for a reasonable amount of pips, I could see how you could make it a very successful system.

However, for the purposes of this thread, I am trying to learn the rainbow. Why? Because it tells you what the market condition is so you can cut out the being butchered part in consolidating markets. The rainbow will show you like a smack in the face when not to trade. Determining the perfect moment to enter has been my biggest challenge.

Linuxtroll claims to trade the rainbow with superb success(80%-90%) and it is my goal to get to his level of trading.

ABOVE ALL THOUGH, the rainbow has made trading fun for me again.. I have to admit, shooting for the small pips has a sense of thrill to it that I haven't felt since I first started trading those 2 LOoooooooNNNNG years ago

And if anyone gives me a speech about keeping emotions in check, RoaR...
  • #11
  • Aug 29, 2007 2:40pm Aug 29, 2007 2:40pm
Quoting kharvell
Thank you sir

Last trade stopped out for -21 pips Flat as a pancake...
Should have gotten out earlier bro. You know better than to wish it into a winner. Use that 144 as your stop or look at those highs and lows. Even though this is a 1m chart they still play, you had 3 consecutive lower highs should have thrown up a flag, also higher lows saying consolidation. Take that 5 pip loss, not 21. Otherwise......DAMN THIS IS FUN!
  • #12
  • Edited 3:16pm Aug 29, 2007 3:04pm | Edited 3:16pm
Quoting C.E.O.
Should have gotten out earlier bro. You know better than to wish it into a winner. Use that 144 as your stop or look at those highs and lows. Even though this is a 1m chart they still play, you had 3 consecutive lower highs should have thrown up a flag, also higher lows saying consolidation. Take that 5 pip loss, not 21. Otherwise......DAMN THIS IS FUN!
LOL, I'm still learning, it is true, but I appreciate your take on where I went wrong You're definitely right about just losing and moving on. Thanks for the wake up call.

Right now, I'm Long NZD/USD and am up 19 pips with 10 locked in, expecting a bigger break up, unless forex smacks my S/L.

EDIT: Stopped out for +15 pips. I'll take it
Attached Image
  • #13
  • Edited 3:46pm Aug 29, 2007 3:30pm | Edited 3:46pm
Long AUD/JPY @ 95.44
S/L = 95.35

EDIT:

3:44PM CST Going flat like a pancake. This reminds me of the Old Man and the Sea... Since the recent trend is so bullish I'm going to see what happens; I may lose and I'm alright with that. If I do it will be for -9 pips
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_49.png Size: 37 KB
  • #14
  • Aug 29, 2007 4:34pm Aug 29, 2007 4:34pm
Quoting kharvell
Long AUD/JPY @ 95.44
S/L = 95.35

EDIT:

3:44PM CST Going flat like a pancake. This reminds me of the Old Man and the Sea... Since the recent trend is so bullish I'm going to see what happens; I may lose and I'm alright with that. If I do it will be for -9 pips
Hi Kharvell,

good to see you've started this journal...couldn't get enough of the rainbow action from LT's scalping thread

i'm trading using the rainbow on a 1min chart (same wma's as u i think) but using it on the dow. like you said at the start of the journal the best thing about it is that within seconds u can see what phase the market is in and trade accordingly. i only short below the rainbow and long above it and am enjoying it big time. i have a macd to time my entries of 13 / 11 / 1 when it crosses 0 i pull the trigger.

all the best riding the rainbow and look forward to more + pip days

bd.
  • #15
  • Aug 30, 2007 3:01am Aug 30, 2007 3:01am
thanks for understanding

Have Fun and great trades my friend Kharvell
  • #16
  • Aug 30, 2007 3:45am Aug 30, 2007 3:45am
Being practising rainbow live on oanda 5 sec chart. Since EJ has been such a mover recently, it is no surprise we all experience some degree of success. But looking back several months where much less breakouts & big moves occurred daily, i suspect things would be this easy forever. Would appreciate to hear opinions from experienced players like KH.
  • #17
  • Sep 1, 2007 12:58pm Sep 1, 2007 12:58pm
Quoting benssol
maybe late entry but it will work

you know kharvell

I remember I saw a similar method in some book that I dont remember it's title but I guess the writer was ross

the method uses also moving averages
two 40 SMA the first applied to the Highs and the second applied for the Lows

those two SMAs makes a channel
for long entry wait for price to close above the channel but dont enter
then wait for the first bar that makes lower low
on the break of the high of this bar you enter long

and vice versa for the short entry

dont enter when the price moves inside the channel

I use it on 5M/15/30 with some price action successfully

I dont want to disturb your thread
just trying to help my friend

I attached the chart of the EJ with this method, it gives clear long @ 155
It is not a help at all my friend... This method was used by many traders in the old days... It uses the slow, lagging SMAs and you can not compare it with Rainbow with WMAs... I did enough research about these existing methods and systems before I device my Rainbow to help my high-probability low frequency scalping...

The writer is not Ross -- Many old traders were using this way before Ross... and it was called as The Moving Average Channels... Ross, Raghee and others may have used that idea to develop their channels... Rainbow may look like a channel; but there is more to it...

Here is a link for you to enjoy: http://www.stock-charts-made-easy.co...e-channel.html

Cheers,
--
Trollmann
  • #18
  • Sep 1, 2007 1:03pm Sep 1, 2007 1:03pm
Way to go Kharvell... Charge on and make millions...

Quoting kharvell
First of all, I would like to thank Linuxtroll for his information regarding trading the rainbow. An experienced trader like him deserves credit where it is due.

The beauty of the rainbow is its subjectivity. We may all see different entries based off the rainbow in the light of our own personal history of what we've experienced in our trading past. You begin to recognize what entails a trending and consolidating market. This all comes with time.

By no means am I an expert here, and thus the purpose of this journal is for me to perfect the rainbow until I trade it profitably day after day, week after week, and year after year. I will include information on a $2000ish dollar account that I have after each week, to show my progress along the way.

On my 5 SECOND-1 MINUTE chart:

WMA's (24-144 in intervals of 6)
Average Price

MY S/L IS 10 pips + spread.

ANY MAJORS will be the currencies traded

I am not here to teach you, I am here to help you learn on your own.

If you have questions, please ask I consider myself a nice guy.

Feel FREE to contribute in a positive way, as much as I like talking to myself all day...

  • #19
  • Sep 1, 2007 1:09pm Sep 1, 2007 1:09pm
Quoting kharvell
Hey benssol,

Thanks for your post mate. I have tried a fair share of cross systems, and they get butchered during consolidating markets. Although if you were to aim for a reasonable amount of pips, I could see how you could make it a very successful system.

However, for the purposes of this thread, I am trying to learn the rainbow. Why? Because it tells you what the market condition is so you can cut out the being butchered part in consolidating markets. The rainbow will show you like a smack in the face when not to trade. Determining the perfect moment to enter has been my biggest challenge.

Linuxtroll claims to trade the rainbow with superb success(80%-90%) and it is my goal to get to his level of trading.

ABOVE ALL THOUGH, the rainbow has made trading fun for me again.. I have to admit, shooting for the small pips has a sense of thrill to it that I haven't felt since I first started trading those 2 LOoooooooNNNNG years ago

And if anyone gives me a speech about keeping emotions in check, RoaR...
I added a section in my e-book for that (including motivation)... LoL
  • #20
  • Sep 1, 2007 1:12pm Sep 1, 2007 1:12pm
Quoting C.E.O.
Should have gotten out earlier bro. You know better than to wish it into a winner. Use that 144 as your stop or look at those highs and lows. Even though this is a 1m chart they still play, you had 3 consecutive lower highs should have thrown up a flag, also higher lows saying consolidation. Take that 5 pip loss, not 21. Otherwise......DAMN THIS IS FUN!
Absolutely... and it gives you a couple of chances to get out with minor loss... where you can identify the bad sign and flip and break even... That's why screen time is important... No worries -- you can always capture another big fish again...
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