Rainbow similarity

hey guys
first things at first. english is not my native language. so dont blame me for some wrong spelled words etc.

Here we go. this is a simple trading idea that came in mind while i was searching for a holy grail. which simply doesnt exist. i think you guys know that.

jump to "and this i how it should look like" if you are not intrested in my story
I
I
I facts about me:
I my forex journey of ups and downs started with binary options.
I in the beginning this worked well for me, it was only a question of time till im millionaire. but the real question was, when my first account will
I blow up in loud noise, chaos and rivers of tears. that's a fact i realized way to late.
I
I i thought trading is gambling and stopped.
I
I but it felt like a defeat and normaly i dont give up untill my goal is reached. so i came back. i tried indicators another one and yet antoher one, next one
I so onand so on. some systems in this forum looked so profitable but all of them doesnt fit my trading style so i failed. but there were 2 threads
I which caught my attention. the problem was they just fitted 50%.
I
I so here is where my idea comes into place.
I
I why not combine these two?!
I
I http://www.forexfactory.com/showthread.php?t=434603
I great thanks to EURUSDD for the work and the knowledge he gave me.
I
I http://www.forexfactory.com/showthread.php?t=99048
I and also great thanks to 4xq to indicate me for the rainbow system.
I
VV
V
and this i how it should look like


colourful, huh?


Here are the rules:

-NEVER TRADE AGAINST THE RAINBOWTREND
-avoid ranging markets
-for trading i recommend M15 (works on all TF)
-higher TF for the trend (ex. M15 for trend, M5 for entry point)
-cycle identifier (later on CI) to identifie possible reversals, careful it repaints but its no big deal(has to be tweaked for each timefarme and each pair)
http://www.forexfactory.com/showthre...40#post7700940
-Rainbow must have the same direction as CI
-red has to be in the rainbow
-wait for CI
-MBFX has to confirm CI (in some cases there is no CI indication. this belongs to your CI tweaks. for this, MBFX should be enough to take the trade)
-wait for the candle to close!!!(to avoid repaint, even this is not 100% sure, but as you know there are no 100% on forex)
-ENTRY
-place SL a little under the last low/over the last high (tight SL)/place SL a little under the last swinglow/over the last swinghigh (wide SL)
-TP CI or MBFX indication (has to be discussed)

sneak into a trade:
(historical example)

1. know what a trend in this system is



2. avoid ranging HIGH RISK



3. sneak into a trade (same example, without trend-highlights from 1. to see better)



4. sneak into a trade HIGH RISK (same example, without trend-highlights from 1. to see better)



to be honest i took the risky one, thats my style. but i allways have a tiny SL. like a golden trade rule says "limit losses and let profits run".

important post:
http://www.forexfactory.com/showthre...01#post7705101
http://www.forexfactory.com/showthre...99#post7706199
http://www.forexfactory.com/showthre...45#post7706545
______________________________________________________________________________________________________________________________

other examples:

this one i took yesterday on EU, i got stopped out at the first time -69 nanopips -6.9pips. but i re-entered because the higher TF was stronlgy on a down trend et violà +307 nanopips +30.7 pips (from now on i prefere to write in nanopip)


this is on EJ no SL hit but missed some pips, but thats part of the game +273p


GU 26.08.2014, H1 trend was down, thats why i took this one +169p and this is an example why we have to discuss about the TP missed so many pip. SL not hit


that is one i took today 27.08.2014 on AU +101p, no SL hit, but missed both re-entrys



lets have a nice discussion feel free to ask any questions which was not answered above and share your thoughts like in all threads of FF
sharing is caring.

ps: i will share all my trades from now on.

here are the incicators and the template

ah i forgot this one HIGH RISK
SL was hit once -45p re-entered and +183p

very nice system

can i use it in us session on 1m chart with 5 min chart to look for trend?

sure but beware on 1 min charts the CI is repainting allways confirm with rainbowtrend and MBFX but i recommend M15. its not so stressful.

right now im trying to trade against the trend HIGH RISK
the goal is to improve my skill with this system more and more to be able to read the CI better in combination with MBFX.

maybe i will get stopped out. but i will take it as a lesson for us all. i know im trading against the first rule! entered at the red vertical line

-NEVER TRADE AGAINST THE RAINBOWTREND



edit: got stopped out -45p. see how important the first rule is!

missed that one on EG

waiting for a possible re-entry

Pure beauty

could be better my exit points are not that good. i try to find a solution.

or is it to greedy?

Jimmy thanks for sharing. Can you please explain about the rule of CI in your trading? Thanks!

1. find similarity. if you dont know what that means go to http://www.forexfactory.com/showthread.php?t=434603 in this system similarity in shown in the picture below. if similairty spikes point against the rainbow keep away from the market.

2. wait untill the rainbow moves in this direction. white line has to point up and all colours have to be above the white line like in the picture below, if rainbow wont change CI gave a wrong signal.

3. wait for the colour red to go into the rainbow

4/5. wait for a CI spike which is in the same direction like the similarity spikes from the first point and MBFX to point in the direction of CI and vice versa.
6. enter the market and place SL below the last low of your entry point +spread

I like fixed TP's on this timeframe (eg. 100 nanopips) quick in and out always with the clear trend.

HIGH RISK because its against the rainbow.
i re-entered AU because of the spikes on H1 TF at the red vertical line. just a quick scalp.
-45p SL hit
+120p TP


once again i did not follow the rules but even this worked for me.

it is up to you to decide.

thats the point. i dont want a fixed TP. sometimes the TP will not be reached and winners turn into losers.

with this 3 indicators the entrys are good. but the exit points have to be improved.

Pure beauty! I am in love.

OH a famous visitor.

and i really wanna thank you once again for your similarity thread!!!

UJ MEDIUM RISK
another trade i took a few minutes ago. i took my profits fast because the rainbow wasnt in his full beauty maybe re-entry time will tell.
+50p

here is the explanation for the CI tweaks

i recommend for TF M15:

CI1
priceactionfilter 1
length 5-10
majorcyclestrength 4

CI2
priceactionfilter 1
length 5-10 * 3 = 15-30
majorcyclestrength 4

i think on EU length 5 and 15 looks quiet nice.
i think on GU length 10 and 30 looks quiet nice.

Hi

Like the system so far.

What is the settings for the cycle identifier?

Will test for the rest of the week....

As I posted it came through thanks...

i am glade to see that im not talking to myself.

pls show us your impression in the system over this week. may we can learn from you