The MA Forex Trend Rainbow indicator was designed for Metatrader 4 and draws a trend-following buy & sell rainbow on the chart.
The indicator pops up in the main MT4 chart window as multiple colored moving averages that together form the trend rainbow.
Buy & Sell Trade Example
- Open a buy trade as soon as the candlestick crosses above the MA rainbow (strongly bullish).
- Open a sell trade as soon as the candlestick crosses below the MA rainbow (strongly bearish).
The MA Forex Trend Rainbow indicator can be used for both trade entry and exit or as an additional trend confirmation filter for other strategies and systems.
For scalping, the indicator performs best during the London and New York trading sessions.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “MA_Rainbow.mq4” indicator for MT4
Indicator Chart (EUR/USD M5)
The picture below shows the MA Forex Trend Rainbow mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy when trading with the MA Forex Trend Rainbow indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Moving average
Does the indicator repaint? No.
MA Forex Trend Rainbow + Scalper Signal MT4 Intraday Strategy
This scalping strategy combines the MA Forex Trend Rainbow Indicator for MT4 with the Scalper Signal Metatrader 4 Forex Indicator.
The MA Rainbow shows trend strength: when candlesticks close above the rainbow, it signals a strongly bullish trend, and when they close below, it signals a strongly bearish trend.
The Scalper Signal indicator provides green arrows for buy signals and red arrows for sell signals.
Using these indicators together provides precise entry points for quick scalping trades in intraday sessions.
Why this strategy works
This strategy works by combining trend confirmation with quick entry signals.
The MA Rainbow identifies strong trend directions, ensuring trades are aligned with market momentum.
The Scalper Signal provides entry points that allow for short-term, high-probability trades.
This combination helps scalpers capture fast moves while minimizing exposure to countertrend price action.
Buy Entry Rules
- Wait for the candlestick to close above the MA Rainbow, indicating a strong bullish trend.
- Confirm a green arrow appears on the Scalper Signal indicator.
- Enter a buy trade at the open of the next candle after both conditions are met.
- Place the stop loss below the most recent swing low or below the MA Rainbow.
- Set the take profit between 5–15 pips for fast scalping, depending on volatility.
- Close the trade if the candlestick closes below the MA Rainbow or a red arrow appears on the Scalper Signal.
Sell Entry Rules
- Wait for the candlestick to close below the MA Rainbow, indicating a strong bearish trend.
- Confirm a red arrow appears on the Scalper Signal indicator.
- Enter a sell trade at the open of the next candle after both conditions are met.
- Place the stop loss above the most recent swing high or above the MA Rainbow.
- Set the take profit between 5–15 pips depending on market volatility.
- Close the trade if the candlestick closes above the MA Rainbow or a green arrow appears on the Scalper Signal.
Advantages
- Combines trend strength and quick entry signals for high-probability trades.
- Designed for intraday scalping, capturing fast price moves.
- Visual signals make monitoring easy for scalpers.
- Works well on highly liquid pairs during active trading sessions.
- Provides clear stop loss and take profit guidelines for disciplined trading.
Drawbacks
- Stop loss can be triggered during minor retracements even in trending markets.
- Performance may vary based on spread and broker execution speed.
Case Study 1 – GBP/JPY M5
During the London session, GBP/JPY candlesticks closed above the MA Rainbow while the Scalper Signal displayed a green arrow.
A buy trade was entered at 173.25 with a stop loss at 173.15 and a take profit at 173.35.
The trade reached the target in 8 minutes, resulting in a 10-pip gain.
Case Study 2 – EUR/USD M5
During the New York session, EUR/USD candlesticks closed below the MA Rainbow while a red arrow appeared on the Scalper Signal.
A sell trade was entered at 1.0875 with a stop loss at 1.0885 and a take profit at 1.0865.
The trade achieved the target in 12 minutes, yielding a 10-pip gain.
Using both indicators together helped avoid countertrend entries.
Strategy Tips
- Use M5 charts for fast scalping and responsive entries.
- Focus on liquid pairs such as EUR/USD, GBP/USD, USD/JPY, and GBP/JPY to reduce spread impact.
- Adjust stop loss and take profit according to volatility and session conditions.
- Follow both indicators strictly to maintain discipline and improve trade accuracy.
This scalping strategy merges trend strength and fast entry signals to provide precise, disciplined intraday trades with controlled risk and consistent profit potential.
