SMA Rainbow Trend Indicator
Platform: MT4 Type: Trend Last update: September 24, 2024The SMA Rainbow Trend indicator is a very popular trend-following indicator that consists of multiple colorful moving averages.
The way to use that gauge is really simple. When all moving averages are pointing up – there is a bullish trend. Similarly, when When all moving averages are pointing down- there is a bearish trend. Avoid trading when MA’s are embroiled, or the price is plotted inside the rainbow.
An example entry point would be based on SMA Rainbow Trend plus some price action pattern: during a downtrend, the price could make a small upward correction. Next, a rejection could happen (like pin bar), and then a continuation signal like an engulfing candle could occur.
