The Rainbow Arrows V1 indicator for Metatrader 4 is a fantastic trend trading indicator.
It follows the overall trend and delivers buy and sell arrows directly on the main trading chart.
- A green arrow represents a buy signal
- A red arrow represents a sell signal
Rainbow Arrows V1 keeps delivering additional buy/sell signals in the direction of the overall trend.
As shown on the chart below, the indicator can make you awesome pips.
Some options and parameters can be modified from the indicator’s inputs tab.
Feel free to modify them to suit your preferences.
Free Download
Download the “RainbowArrows_V1.ex4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below displays the Rainbow Arrows V1 Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the Rainbow Arrows V1 MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Buy the pair when a green Rainbow Arrows V1 buy arrow appears on the chart. Place a stop below support.
Sell Signal: Sell the pair when a red Rainbow Arrows V1 sell arrow appears on the chart. Place a stop above resistance.
Rainbow Arrows + Zwinner Trend Intraday Forex Strategy (MT4)
This intraday strategy combines the Rainbow Arrows V1 with the Zwinner Trend Indicator.
The Rainbow Arrows indicator plots green arrows for buy signals and red arrows for sell signals.
The Zwinner Trend shows a histogram: green bars denote a bullish trend, red bars denote a bearish trend.
By using both tools, you gain both signal timing and trend confirmation to take more reliable intraday trades on M15 and H1 charts.
This strategy is suited for day traders who want clear trend alignment plus good entry points.
It works particularly well during active sessions like London and New York on pairs that offer decent volatility, such as EUR/USD, GBP/JPY, and USD/CAD.
Using both indicators helps to avoid counter-trend trades and gives more confidence to hold intraday positions.
Buy Entry Rules
- On the M15 or H1 chart, check that the Zwinner Trend histogram is green, indicating an uptrend.
- Wait for a green arrow from the Rainbow Arrows indicator.
- Enter a long trade at the close of the candle with the green arrow, but only if the Zwinner histogram stays green.
- Place the stop loss below the recent swing low, or a few pips under the arrow candle.
- Take profit: for M15 aim for 20‑40 pips, for H1 you can target 40‑80 pips depending on market action.
- If the Zwinner histogram begins to turn red or weakens, consider closing part or all of the position.
Sell Entry Rules
- Make sure the Zwinner Trend histogram is red, signaling a downtrend.
- Wait for a red arrow from the Rainbow Arrows indicator.
- Open a short position at the close of the candle that shows the red arrow, provided the Zwinner histogram remains red.
- Place a stop loss above the recent swing high or just above the arrow candle.
- Set a take profit: for M15, aim for 20‑40 pips; for H1, 40‑80 pips is reasonable, depending on pair and volatility.
- You may exit early (or scale out) if the Zwinner histogram weakens or turns green.
Advantages
- The trend filter from Zwinner Trend helps you stay with the prevailing market direction.
- Rainbow Arrows give precise entry signals, which improve timing.
- The strategy works well on both M15 and H1, offering flexibility for faster or slower intraday trades.
- Reasonable risk‑reward potential when targets are aligned with trend strength.
- You can adjust the profit target according to intraday volatility.
Drawbacks
- Arrows can appear slightly after strong momentum begins, causing delayed entries.
- The Zwinner histogram may lag or flip late, especially when the trend shifts quickly.
- Trades might be fewer because you only take entries when both indicators agree.
Case Study 1
On EUR/JPY (M15) during the London session, the Zwinner Trend histogram turned green and held steady for several bars.
A green arrow from the Rainbow Arrows indicator then appeared on a pullback candle.
The trader entered long at the close of that candle, placing a stop loss just under the swing low.
Price rallied strongly, climbing around 35 pips in the next hour.
The Zwinner histogram remained green for most of the move, confirming to hold until the target of 40 pips was reached.
Case Study 2
On GBP/USD (H1) in the New York session, the Zwinner Trend histogram turned red, showing a clear bearish trend.
The Rainbow Arrows indicator printed a red arrow after a small consolidation.
The trader went short at the close of that candle, with a stop loss above the recent swing high.
Over the next few hours, GBP/USD dropped about 60 pips.
The red histogram bars stayed in place long enough to give confidence, allowing the trader to ride most of the move before taking profit.
Strategy Tips
- Use pairs that have decent intraday range; avoid pairs that are too slow or too erratic.
- Always check that Zwinner Trend confirms the direction before taking an arrow signal.
- Consider scaling out: close half at an early target and let the rest run as long as the trend remains strong.
- Be ready to exit early if the histogram fluctuates or reverses color to protect profits.
- Backtest the strategy on different currency pairs to see which ones it performs best with on M15 and H1.
Download Now
Download the “RainbowArrows_V1.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (fast MA settings, MA type, count bars) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: trend signals
