Rainbow MA MT4 Indicator
Moving averages can help forex traders to determine support and resistance zones. They also help investors to see if the currency pair is trending or is about to go sidelines. We can use multiple moving averages to get a better visual on the trend. In the picture above you can see that the moving averages act like resistance and price is rejected at these levels.
If the currency pair starts to move away from the moving average rainbow, that shows us that the pair is accelerating its movement. When this happens, moving averages becomes distant from each other. If the currency pair starts to move closer to the moving average rainbow, that shows us that the pair is losing its strength. When this happens, moving averages come close to each other.
How to Trade With Rainbow Moving Average:
Buy Signal: Wait for the price bar to close above the moving average rainbow.
Sell Signal: Wait for the price bar to close below the moving average rainbow.