The Gaussian Rainbow MA forex indicator is built up of multiple moving averages with different periods.
It consists of short-term, medium-term and longer-term moving averages.
This creates the Gaussian Rainbow MT4 indicator.
It’s an easy to follow trend following forex indicator that is built on sound logic.
- A bullish trend occurs when candlesticks are trading above the Gaussian Rainbow. Look here for buy trades.
- A bearish trend occurs when candlesticks are trading below the Gaussian Rainbow. Look here for sell trades.
It’s a good idea to experiment a bit with the indicator’s default period (40) setting to suit your needs.
Try it for scalping, day trading and swing trading.
It can be used as a standalone buy/sell indicator or together with an oscillator to scalp in the direction of the overall Rainbow trend.
The GBP/USD 30-minute chart below displays the Gaussian Rainbow MA Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Gaussian Rainbow MA MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Go long when the candlesticks are positioned above the Gaussian Rainbow MA indicator. Place a protective stop-loss either below the lower purple MA line or below support.
Sell Signal: Go short when the candlesticks are positioned below the Gaussian Rainbow MA indicator. Place a protective stop-loss either above the upper purple MA line or above resistance.
Trade Exit : Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (period, price, Gaussian steps, MA’s) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the gaussian-rainbow.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)