Gaussian Rainbow Indicator

Gaussian Rainbow Indicator is a multi-moving average based trend-following forex trading indicator. It uses a set of eight moving averages of different parameters to form a cloud that tells about the market momentum, trend direction, and possible trend reversal conditions. It fits all kinds of timeframes and currency pairs.

Buy Conditions

  • Price holds its position above the rainbow
  • A bullish candle forms right at the top edge of the cloud
  • A buy can be triggered at the break of the respective bullish bar’s high
  • Set stop loss below the low of the trend-cloud
  • Exit long/take profit whenever a bearish candle closes deep inside of the rainbow area

 

Sell Conditions

  • Price holds its position below the rainbow
  • A bearish candle forms right at the lower edge of the cloud
  • A sell can be triggered at the break of the respective bearish bar’s low
  • Set stop loss above the high of the trend-cloud
  • Exit short/take profit whenever a bullish candle closes deep inside of the rainbow area

 

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