Rainbow Bars 2 Trend Trading Indicator
Rainbow Bars 2 Trend Trading Indicator - is another interpretation of the fan moving averages.
The Rainbow Bars 2 indicator shows the divergence of the five moving averages relative to each other, and the stronger the divergence, the richer the color of the candles:
- the divergence of the MA upwards - from yellow to red;
- the divergence of the MA downwards - from blue to dark blue.
The meaning of the Rainbow Bars 2 indicator is as follows:
- as soon as MA1 > MA2 - there is a weak positive divergence of the indicator;
- as soon as MA1 > MA2 and MA2 > MA3 - there is a stronger positive divergence of the indicator;
- as soon as MA1 > MA2 and MA2 > MA3 and MA3 > MA4 - there is an average positive divergence of the indicator;
- as soon as MA1 > MA2 and MA2 > MA3 and MA3 > MA4 and MA4 > MA5 - there is a strong positive indicator divergence;
- as soon as MA1 < MA2 - there is a weak negative divergence of the indicator;
- as soon as MA1 < MA2 and MA2 < MA3 - there is a stronger negative divergence of the indicator;
- as soon as MA1 < MA2 and MA2 < MA3 and MA3 < MA4 - there is an average negative divergence of the indicator;
- as soon as MA1 < MA2 and MA2 < MA3 and MA3 < MA4 and MA4 < MA5 - there is a strong negative divergence of the indicator.
Rainbow Bars 2 Trend Trading Indicator is equally effective on both regular and Renco charts. In the settings, you can set the thickness of the colored bars - so that you can exactly match the thickness of the bars of the symbol, depending on the scale that you have enabled.
Download Rainbow Bars 2 Trend Indicator