The Averages Rainbow for Metatrader 5 is a powerful Forex trend signal indicator consisting of multiple moving averages.
It’s a popular trading tool that helps traders catch the trend at interesting reversal points.
The rainbow colors make it easy to visualize the strength and direction of the trend.
The following indicator inputs and parameters can be modified: averages method, period, price, color scheme, line style.
For M1 and M5 chart traders: deploy the indicator on the lower spread Forex pairs for better and faster profits.
Make yourself familiar with this technical indicator and test it first on a demo account before using it on real trading account.
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The following chart shows how the Averages Rainbow Forex Signal indicator looks like when applied to the MT5 chart.
How To Buy And Sell Currency Pairs With The Averages Rainbow Forex Signal?
Find a simple trading example below:
- A buy signal is confirmed when the blue colored rainbow gets displayed in the chart.
- Open a buy order and place a stop loss slightly below the blue rainbow.
- Take profit method 1: close and reverse the buy trade when a sell signal occurs in the chart.
- Take profit method 2: exit the buy trade for a predetermined number of pips.
- A sell signal is confirmed when the orange colored rainbow gets displayed in the chart.
- Open a sell order and place a stop loss slightly above the orange rainbow.
- Take profit method 1: close and reverse the sell trade when a buy signal occurs in the chart.
- Take profit method 2: exit the sell trade for a predetermined number of pips.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Averages_rainbow.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration