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.
Free Download
Download the “gaussian-rainbow.mq4” MT4 indicator
Indicator Chart (GBP/USD M30)
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 go 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.
Gaussian Rainbow + Figurelli Series MT4 Scalping Strategy
This MT4 scalping strategy combines the trend-following clarity of the Gaussian Rainbow MA Indicator with the fast momentum signals of the Figurelli Series Scalper Indicator.
The Gaussian Rainbow provides an easy-to-read trend filter. When candlesticks are above the rainbow, the market is bullish.
When candlesticks are below the rainbow, the market is bearish.
The Figurelli Series Scalper adds short-term entries with a red histogram showing bullish signals above 0 and bearish signals below 0.
This strategy works well on M1, M5, and M15 timeframes and is suitable for intraday scalpers who want clear, trend-aligned signals.
It performs best on highly liquid currency pairs like AUDUSD, USDJPY, or GBPUSD.
Buy Entry Rules
- Candlesticks must be trading above the Gaussian Rainbow, confirming a bullish trend.
- The Figurelli Series histogram is above 0, giving a buy signal.
- Enter a long position at the open of the candle that confirms the histogram signal.
- Place a stop loss a few pips below the Gaussian Rainbow or below the most recent swing low.
- Take profit at 10–25 pips or at the next minor resistance level.
Sell Entry Rules
- Candlesticks must be trading below the Gaussian Rainbow, confirming a bearish trend.
- The Figurelli Series histogram is below 0, giving a sell signal.
- Enter a short position at the open of the candle that confirms the histogram signal.
- Place a stop loss a few pips above the Gaussian Rainbow or above the most recent swing high.
- Take profit at 10–25 pips or at the next minor support level.
Advantages
- Combining trend (Gaussian Rainbow) and momentum (Figurelli Series) increases the probability of successful scalps.
- Simple to read and execute, suitable for fast intraday trades.
- Works well on volatile, liquid pairs for quick profits.
- Flexible enough to scalp on multiple timeframes, including M1, M5, and M15.
Drawbacks
- During low liquidity, trades may hit stop losses quickly due to small spikes.
- Take profit levels must be adjusted carefully, as scalps rely on small pip gains.
Case Study 1: NZDUSD M5
During the early London session, NZDUSD traded above the Gaussian Rainbow, indicating a bullish trend.
The Figurelli Series histogram rose above 0, giving a buy signal.
A long trade was entered at 0.6135 with a stop at 0.6125, risking 10 pips.
Price moved quickly to 0.6150, securing a 15 pip gain before encountering resistance.
Case Study 2: EURJPY M1
EURJPY was below the Gaussian Rainbow in a short-term downtrend during the Tokyo session.
The Figurelli Series histogram dropped below 0, confirming a sell entry.
A short position was taken at 142.80 with a stop at 142.95, risking 15 pips.
Price fell steadily to 142.60, resulting in a 20 pip profit within a few minutes.
Strategy Tips
- Scalp during high volatility periods, such as the London and New York sessions, for better momentum.
- Ensure the Gaussian Rainbow is clearly above or below the candlesticks to avoid choppy conditions.
- Wait for a fresh histogram bar on the Figurelli Series before entering to reduce false signals.
- Combine trades with minor support and resistance levels for safer entries and exits.
- Keep lot sizes small since scalping targets limited pips per trade.
- Consider closing trades early if momentum slows, even before reaching the target pip gain.
Download Now
Download the “gaussian-rainbow.mq4” Metatrader 4 indicator
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
Type: trend
