Rainbow Squeeze

Okay, I have an alert/alarm signal for this system. Yea!...
But it’s not perfect.
Here’s the scoop:

First [sadly, imho] it is an E.A. I really do not like E.A’s: I am much in favor of indicator when it comes to receiving alert signals. And second it will give an alert alarm under more circumstances than just for the rainbow squeeze.

Here is a list of the possible alarms you will get with this:
1. Close above 50ema(HL/2) + the currency pair and the time frame
2. Close below 50ema(HL/2) + the currency pair and the time frame
3. SAR UP + the currency pair and the time frame
4. SAR DOWN + the currency pair and the time frame
5. Touching top band + the currency pair and the time frame
6. Touching bottom band + the currency pair and the time frame

For this EA, you will have to ignore all alerts for 1-4;
For this EA, ONLY pay attention to an alert which says:
“Touching top/bottom band”

If you load this EA onto a currency pair where you have already loaded the rainbow squeeze template it will make a sound alarm when the price action bar pierces into the pink bands (the 2.6 deviation bands) either on top or below. It will also give you a pop-up box telling you which currency pair and time frame the signal has occurred on.

This alert is intended to be a “wake-up call” alert ONLY. It does NOT necessarily signal an entry. In other words, if you load this EA, you can walk away from your computer screen and not have to worry about missing an opportunity. It will let you know when price action goes into the pink bands. This often occurs just before some good movement. When you get the alarm, you can then check the currency pair and decide if all the other necessary factors are there to place a trade (see post one for this list).

I will post future, improved, versions of this alert alarm as I obtain them.


The Bottom Line:
Using this EA with the rainbow squeeze will help reduce the number of missed signals. It is not perfect, but it is handy. It has already successfully alerted me to a nice move that I would otherwise have missed.



Trade well.

Here is a custom indicator built to be used in conjunction with the rainbow squeeze template on MT4.

What it does is alert you (by a pop up box, telling you which pair and time frame and a auditory alert) to when price action hits the first +/- light pink band (representing a 2.6 deviation) for any time frame you have open. This is key, as when this occurs it is often an indication that a good trade is brewing, or ripe.

I have installed this indi to my currency pairs, and leave the computer on, this way if something is brewing, I am alerted.

It also can be set to send you emails to alert you. This would be ideal, but if you can figure out how to get MT4 to send emails to a yahoo or gmail account, let me know! I can't for the life of me get it to work - even after going to you-tube, and the mt4 web page, and threads on this site - there seems to be universal frustration on getting this to work, even when you know your SMTP info.)

This indi has begun helping me get some pips. 20 minutes ago I was making dinner, and I heard the alert. It was the Kiwi, and I took a look at the template, and indeed it was ripe for a trade. I increased my total equity by 0.9%!!! (risked 1.0%, on the heavy side, but the signal looked particularly nice)

It doesn't always work out this way, but it is starting to look like its greater than 50% successful, and its gains are out weighing the losses... aka - I'm happy with it! Biggest downfall is still that it doesn't come around all that often.

Let's hope I can keep this up as I am my worst enemy in fore trading. Largest profit in pips 85 smallest 38 EU only

What happened to this discussion ?

Hi Saidar,
A couple of things. I had some computer problems which prevented me from trading for a while. But the second thing, the bigger thing, was my account size. I had a 40% return for 2010. I number I am quite happy with, and a number which surely would make my 401K accountant blush when compared to what he got me for the year. But the problem was I was my 4x account was not all that big to begin with, so a 40% return didn't really do much for paying the rent so to speak. Okay, so maybe I should get back into this. Anyone else using this (entry) system? How has it been going?

Seemed like this approach had some legs to it....would be nice to revitalize this thread.....

Okay, so these new posts have brought my interest back. I pulled out the old trading lap top, and plan on getting back into this
If there is anyone else out there trading this system, please share your thoughts.

looks like this system is still signaling nicely. Here is a great signal from 3AM EST this morning. As the efficacy of all system ebbs and flows with the current market type, its nice to see this system can keep on working.

There is a sell signal on the Eur/Jpy right now (10 am EST). I got in a little low for my taste, but the order filled. I'm shrot E/Y @ 114.88. SL is a top the one hour candle, 115.16, and TP @114.500.

seen a lot of older systems getting new bumps, not the first time iv seen a squeeze system but this one seems well put together.

a 40% return for the year is something to drool over imo.

I closed my position at break even at 3:30 (EST) this afternoon because the hourly candle had zero contact with the bands.