Scalping the Rainbow

Thank you for the last 2 answers!

No Problem and the best of luck and many GREEN pips for you...

This is what you are mainly looking for in trading the rainbow is this MMA twist as pictured in agreement with the matrix. There are many other possible entries when watching with a candle stick or HA chart as well in conjunction with the rainbow but this PA movement will many times present excellent entry opportunities. Trading the rainbow successfully is a VISUAL ART that can only be leaned from lots of screen time. As of the posting of this chart no trades are presented with UJ as it is consolidating/ranging just above the daily open line near the 123.250 key level and trades will probably present themselves later in the evening with the LO and the news............

UPDATE: Bottom chart rainbow depicting move up after ranging as pictured above. Not exact time frame but just a example for visual purposes of what that move looked like.

U M5 FIFO scalp +26 (reduced my lots from 20 to 5 due to low volatility at this time and low confidence trade +5.2) entered short with USD strength on pullback and M5 long candle wick figured good for a few pips and closed at my usual 5 +/- pips...........

In answer to some PM's; Yes I trade another system as well on a different thread as I find they both serve as good confirmations for entries.

EU M15 example of a good short for position traders depicting the rainbow twist as I mentioned in a prior post. Although this is a M15 chart if another chart such as the M1 or the M5 is viewed in conjunction with this M15 the trader can see this move occurring as obviously all moves begin at lower time frames. Just an FYI for new traders watching rainbows...........

EU, Wow +222 (20 lots +11.1) late entry butjust caught a small piece of this move in 3 seconds after pullback and break of 1.07000 key level after EURO reached a 7 year low. Hope some banked nice pips............

No talent needed here, just pull the trigger, grab the momentum and go for the ride

Well, it seem like no traders posting here but me, so well be trading mostly at PVSRA.

Regards,
Cigarguy

I really like the idea, but "liking it" isn't enough. However, I still keep my "rainbow" chart - it helps me determine the overall trend (and I also kept it in my avatar ).

It has serious limitations (at least for me) and I became profitable only when I started combining the rainbow with daily pivots, S/R and fibo.

My small contribution to this tread keep alive.Few morning m1 scalps using Bemac rainbow.

I am trying to test this system, and partially understand it. Besides rainbow on M1, I also use CCI and LG to identify entry/exit.

I have problem to read rainbow. Ok, let me explain how I understand it and read it:
- let's say it is uptrend (CCI above 0 and LG cross 0.15 upwards) and red color starts to raise above yellow - let's say theoretically I will place buy order and price continues goes up...profit taken at some level.

What I do not understand with rainbow (dont know how to interpret different colors) when situation is opposite:
- let's say from above example, at some point there is a reversal in trend, price starts fall down (CCI drops, LG croos 0.85 downwards) and thin line starts to reverse (but red MAs still out of yellow). And let's say downtrend is on sight, so when should I enter short entry considering rainbow? Should I wait red to touch yellow MAs, cross them, go further to greens MAs, or? In case I wait for that long, other indicators like CCI and LG will start showing reversal (uptrend), so it could be too late to enter short.

Also, how to interpret red MAs when they are inside rainbow? I mean, there are also some "trends" going on while red MAs inside rainbow, but do not know how to read it, what it means when red MAs are crossing purple, blue, and so on...?

Some additional explanations on how to read rainbow would be beneficial.

Thanks.

[quote=Mares;8634393]I am trying to test this system, and partially understand it.

Some explanations are here.Enjoy.

Cigarguy style trade, very inspiring.. UJ +96.8 pips (8 lots at +12.1) pips.

Took advantage of AUD weakness, EA long trade +57.6 pips (8 lots at +7.2 pips).

AUDNZD short trade, +48.0 pips (8 lots at +6.0 Pips). The P/L box wouldn't show on a sell trade since I had adjusted it to show out of the sub window so I had to re-adjust the setting to make it show on the screen and that is the reason for the delay in posting this chart.

Hi, iam still learning about strategy for trading forex.

Could someone please upload the indicators and the template for this strategy in zip ?
I'll post my progress for using this strategy.

Thank you very much..

[quote=ricmi;8642174] Thanks man, I am reading it!

Some people ask via p.m. for Bemac rainbow template,so, here is.

Thank You..

NZDJPY short trade, +67.2 pips (8 lots at +8.4 pips).

Hi Ninja!
Can you explain right YOUR criterias of taking the trade?
+ Could you please share this 2 indicators or name them?

Thank you!