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Rainbow Patterns/Observations

  • #21
  • Edited 4:32pm Sep 8, 2007 1:19pm | Edited 4:32pm
Quoting wheelsut
nhallmark,
NICE JOB, this is great and love your charts. Keep up the good work and we will all learn and make money together. So far and you have shown it with your charts, I am only looking for a very clear spine (nothing choppy). I have also come to notice the TREND is what is important. Looking at the one minute you can find the overall trend then go to the 5 sec to see if the trend matchs, if they match this is a good time to enter. Just my thoughts. Your charts are showing a good example of this. Anyway looking forward to more of your postings.
Thanks...I actually trade just like you're saying(trade on 5sec but in the direction of 1min trend).

Next week, I will try and post what is happening on the 1min chart while I am posting my trades from the 5sec so we can get a better understanding of what's happening
  • #22
  • Sep 8, 2007 5:12pm Sep 8, 2007 5:12pm
Yes I have to say I agree with Wheelsut. I was gonna make a suggestion to linuxtroll (or someone who is starting to get the hang of it). To make something to illistrate the different signs of placing on order. Kind of like when we all started to learn trading, they show you the different candle stick patterns and what they can mean. Your collection of charts that you are posting is doing this. Great idea, thanks
  • #23
  • Sep 8, 2007 5:54pm Sep 8, 2007 5:54pm
Just for reference, here's a chart originally posted by Bruno modified with entry/exit points by the Trollmann himself...
Attached Image (click to enlarge)
Click to Enlarge Name: Linuxtroll Entry:Exit.jpg Size: 109 KB
  • #24
  • Sep 8, 2007 5:59pm Sep 8, 2007 5:59pm
Quoting nhallmark
Thanks...I actually trade just like you're saying(trade on 5sec but in the direction of 1min trend).

Next week, I will try and post what is happening on the 1min chart while I am posting my trades from the 5sec so we can get a better understanding of what's happening
Take your largest MA from 5sec chart and multiply by 12 to get the equivalent of the largest on 1m chart


240*12=2880, plot that on 5 sec

Then make your smallest MA from 1min a different color on the 5sec
10*12=120, change the color of 120 or make it larger on 5sec and you know where you are at on 1min chart.

Then you don't have to switch charts
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd1m.gif Size: 48 KB
  • #25
  • Sep 8, 2007 6:23pm Sep 8, 2007 6:23pm
Quoting C.E.O.
Take your largest MA from 5sec chart and multiply by 12 to get the equivalent of the largest on 1m chart


240*12=2880, plot that on 5 sec

Then make your smallest MA from 1min a different color on the 5sec
10*12=120, change the color of 120 or make it larger on 5sec and you know where you are at on 1min chart.

Then you don't have to switch charts
Thanks man...I'll try that.
  • #26
  • Sep 8, 2007 7:52pm Sep 8, 2007 7:52pm
OK, I do have a chart of a bad trade...lol. I sent this to linuxtroll a few weeks ago and he said "not enough screen time...watch the spine" ...lol.

I remember this trade and had I stayed in based on the reasons in the chart, I could have pulled 10 pips out of it because it came right back up and broke that level and went shooting up...at the same time, I remember being emotional that day, so if I was thinking right, Im not sure I would have taken this trade in the first place.

Anyway, the chart....
Attached Image (click to enlarge)
Click to Enlarge Name: scalp3.png Size: 48 KB
  • #27
  • Sep 8, 2007 8:32pm Sep 8, 2007 8:32pm
Nhallmark, have you thought to do a backtest of this strategy?
It is quite simple to do it on Metatrader, I don't know how to program but you can go candel by candel on metatrader using F12, it can give you approximate results in the long run.
"Every battle is won before it is ever fought." - Sun-tzu, The Art of War.
  • #28
  • Sep 8, 2007 8:42pm Sep 8, 2007 8:42pm
Quoting Andy12
Nhallmark, have you thought to do a backtest of this strategy?
It is quite simple to do it on Metatrader, I don't know how to program but you can go candel by candel on metatrader using F12, it can give you approximate results in the long run.
Yeah, I've thought about that, but it's not really "backtestable" if thats a word lol.

The reason is because, with candles, Im not able to see the "flow" and recognize the market conditions that this works in.

I also emailed linuxtroll about it and he said "why backtest when you can practice capturing the moves in real time?"

Hence, this journal, so I can keep a log of what is working and what is not and over time, I believe I will come out with a set of rules that will be consistently successful.

That, and I can't get my MT4 to work because of the stupid live update thing...lol.

Thanks for the suggestion though.
  • #29
  • Sep 8, 2007 10:51pm Sep 8, 2007 10:51pm
Quoting C.E.O.
Take your largest MA from 5sec chart and multiply by 12 to get the equivalent of the largest on 1m chart


240*12=2880, plot that on 5 sec

Then make your smallest MA from 1min a different color on the 5sec
10*12=120, change the color of 120 or make it larger on 5sec and you know where you are at on 1min chart.

Then you don't have to switch charts
sorry,i don't quite understand your explaination here.did u mean if we plot 10-240WMAx12 in 1Min chart,we will get the same pattern as rainbow 5s chart?

confusing here
  • #30
  • Sep 8, 2007 11:00pm Sep 8, 2007 11:00pm
Quoting amenlo9
sorry,i don't quite understand your explaination here.did u mean if we plot 10-240WMAx12 in 1Min chart,we will get the same pattern as rainbow 5s chart?

confusing here
I think what he is saying is(correct me if Im wrong) to take the largest MA in the 5sec chart(240 or 144 depending on your setup) x 12 (5sec x 12=60sec/1min) and do the same thing with the smallest MA.

Plot those values on the 5sec chart and that basically creates the outline of the 1min rainbow "overlayed" on a 5sec chart.

Does that make sense?
  • #31
  • Sep 8, 2007 11:19pm Sep 8, 2007 11:19pm
Quoting nhallmark
I think what he is saying is(correct me if Im wrong) to take the largest MA in the 5sec chart(240 or 144 depending on your setup) x 12 (5sec x 12=60sec/1min) and do the same thing with the smallest MA.

Plot those values on the 5sec chart and that basically creates the outline of the 1min rainbow "overlayed" on a 5sec chart.

Does that make sense?
thanks for your explaination.now i already clear what he mean.besides,your rainbow chart are very beautiful.please posting more here
  • #32
  • Sep 9, 2007 1:39am Sep 9, 2007 1:39am
All breakout strategies are backtestable.
Or you mentioning the rainbow flow? Even with rainbow flow you can not see much anything if your shortest WMA 10
Also if you backtest you have no emotional side involved and it will show you how your strategy will do in best possible situation. It could be that it won't work even in those best possible environment. I really hope though that it will work!
Linuxtroll not high on backtesting because he has a tons of experience in live trdading and also very few people posses patience that Linuxtroll has.
However, I been using rainbow almost every day since march 3 2007, so it makes it more then 6 months and I can tell you it is not enough. At least in my experience. So that is why I mention backtesting, unless of course you don't mind playing with rainbow for years untill you will get constant proftable success.
By the way, I should asked you this question before but here it goes. I understand how you using support and resistance. But what are your rules concerning rainbow use?

Quoting nhallmark
Yeah, I've thought about that, but it's not really "backtestable" if thats a word lol.

The reason is because, with candles, Im not able to see the "flow" and recognize the market conditions that this works in.

I also emailed linuxtroll about it and he said "why backtest when you can practice capturing the moves in real time?"

Hence, this journal, so I can keep a log of what is working and what is not and over time, I believe I will come out with a set of rules that will be consistently successful.

That, and I can't get my MT4 to work because of the stupid live update thing...lol.

Thanks for the suggestion though.
"Every battle is won before it is ever fought." - Sun-tzu, The Art of War.
  • #33
  • Sep 9, 2007 3:39am Sep 9, 2007 3:39am
Quoting nhallmark
I think what he is saying is(correct me if Im wrong) to take the largest MA in the 5sec chart(240 or 144 depending on your setup) x 12 (5sec x 12=60sec/1min) and do the same thing with the smallest MA.

Plot those values on the 5sec chart and that basically creates the outline of the 1min rainbow "overlayed" on a 5sec chart.

Does that make sense?
hi nhallmark,

great journal very useful, like the way your compiling a resource of troll information and rainbow observations.

im using it on the 1min to trade dow futures and have the 5 min values on the 1 min chart which is very good. when the bigger t/f rainbow flips at the same time as the smaller t/f is folding over the likely hood of a big move is high.

im just aiming for 20 pips per day for consistent gains to my account....lol.
  • #34
  • Sep 9, 2007 10:13am Sep 9, 2007 10:13am
Great to see your trades! These help me so much in my trading--I keep a journal albeit not online, but it's got a lot of wrong trades--so can look back through them and say no way am I going to do that again I think the hardest thing for me with the rainbow is figuring out the trade during trading (which you alluded for that one 3/2 type trade breakout) I haven't traded on break of support, simply on pullbacks in spine direction. I think your trades on break of support probably have a greater percentage of success--and that is all we need! Do you then trade with limit orders 1 or 2 pips under? And do you just take the fill you get whether it is 0 or 3 pip spread? And you haven't noted tp levels, do you just sell on pullback? Just my questions--thanks for posting, again, they are a great help. pk
  • #35
  • Sep 10, 2007 12:38am Sep 10, 2007 12:38am
Quoting Andy12
All breakout strategies are backtestable.
Or you mentioning the rainbow flow? Even with rainbow flow you can not see much anything if your shortest WMA 10
Also if you backtest you have no emotional side involved and it will show you how your strategy will do in best possible situation. It could be that it won't work even in those best possible environment. I really hope though that it will work!
Linuxtroll not high on backtesting because he has a tons of experience in live trdading and also very few people posses patience that Linuxtroll has.
However, I been using rainbow almost every day since march 3 2007, so it makes it more then 6 months and I can tell you it is not enough. At least in my experience. So that is why I mention backtesting, unless of course you don't mind playing with rainbow for years untill you will get constant proftable success.
By the way, I should asked you this question before but here it goes. I understand how you using support and resistance. But what are your rules concerning rainbow use?
I don't have any set rules yet...mainly the spine has to be crossing the H line at the same time that price is about to break a round number...and it can't be in a wave that has already run its course(or looks like it, anyway).

There are also other things Im looking for like s/r and if the pullbacks in the wave are holding to a trend line, etc...mostly the things I marked in that NFP chart.

I'm still creating a hard set of rules so I don't really have anything to backtest with...also Im realizing how important the time is...like linuxtroll said in his first post "Identify the time..." because when the market is dead, for example, the semi-rules Im using right now won't work because there is nothing driving price.

So, after I have a hard set of rules, I will look at backtesting at that point.

Feel free to share anything you have discovered with the rainbow as I know you've been doing this awhile(different patterns, post charts, etc.)
  • #36
  • Sep 10, 2007 12:39am Sep 10, 2007 12:39am
Quoting brutusdog
hi nhallmark,

great journal very useful, like the way your compiling a resource of troll information and rainbow observations.

im using it on the 1min to trade dow futures and have the 5 min values on the 1 min chart which is very good. when the bigger t/f rainbow flips at the same time as the smaller t/f is folding over the likely hood of a big move is high.

im just aiming for 20 pips per day for consistent gains to my account....lol.
Thanks...I've noticed this as well(both TFs agreeing)
  • #37
  • Sep 10, 2007 12:41am Sep 10, 2007 12:41am
Quoting pkchilly
Great to see your trades! These help me so much in my trading--I keep a journal albeit not online, but it's got a lot of wrong trades--so can look back through them and say no way am I going to do that again I think the hardest thing for me with the rainbow is figuring out the trade during trading (which you alluded for that one 3/2 type trade breakout) I haven't traded on break of support, simply on pullbacks in spine direction. I think your trades on break of support probably have a greater percentage of success--and that is all we need! Do you then trade with limit orders 1 or 2 pips under? And do you just take the fill you get whether it is 0 or 3 pip spread? And you haven't noted tp levels, do you just sell on pullback? Just my questions--thanks for posting, again, they are a great help. pk
Thanks...but don't trade like me lol...Im still learning like you.

I just use market orders because sometimes it might "officially" break support but it doesn't go...you have to get a feel for it(which Im still getting lol)

As far as exits, I just get out when the price stalls, whether its 1 pip or 60..lol
  • #38
  • Sep 10, 2007 12:44am Sep 10, 2007 12:44am
Just for reference, I was digging around on the forums and I found two trades by linuxtroll here...

http://www.forexfactory.com/showthre...539#post178539

and here...

http://www.forexfactory.com/showpost...postcount=5243

I'll post some charts later tonight...the gap has been filled on EUR/JPY and london is about to get started
  • #39
  • Sep 10, 2007 2:02am Sep 10, 2007 2:02am
Quoting nhallmark
OK, I do have a chart of a bad trade...lol. I sent this to linuxtroll a few weeks ago and he said "not enough screen time...watch the spine" ...lol.

I remember this trade and had I stayed in based on the reasons in the chart, I could have pulled 10 pips out of it because it came right back up and broke that level and went shooting up...at the same time, I remember being emotional that day, so if I was thinking right, Im not sure I would have taken this trade in the first place.

Anyway, the chart....
i'm not sure that was a bad thing to close;
if you have a stop limit of the price significantly
breaking the spine, then getting out is just being a
disciplined trader...my $.02

great journal, thanks for the info
  • #40
  • Sep 10, 2007 2:24am Sep 10, 2007 2:24am
Quoting RickJames300
i'm not sure that was a bad thing to close;
if you have a stop limit of the price significantly
breaking the spine, then getting out is just being a
disciplined trader...my $.02

great journal, thanks for the info
Thanks man...I debate about that. Sometimes it does save me from a bigger loss but what I've noticed is that 90% of the time, I am right about direction, yet Im not willing to hold on..lol.

But, yeah, most of the time when it does cross the spine, it doesn't come back...hence, the journal so I can figure all this out..lol
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