4# Rainbow Trading System
Moving Averages with Asctrend
Trend Following Strategy
Submit by Dominique
Rainbow Trading System is a pure trend following strategy base on moving averages. The purpose of this trading system is to filter a free trend indicator such as asctrend but widely used in a commercial way under other names. As is the case with other free indicators that are sold.
The template is made up of colored moving averages that set the direction of the market. when the price is above the moving averages the trend is up when it is below the trend is down.
Then I introduced a filter that detects the volatility of the market to indicate that when the volatility is low dot green we must avoid taking positions but this indication is optional.
Time frame: 15 minutes or more.
Trading Pairs, Currencies, Crypto Currencies, Commodity Stock Indices and Stocks.
Metatrader indicators 4
Rainbow (formed by a set of moving averages)
AscTrend: Sensitivity 6.
Trade only in the direction of the trend
Candle over rainbow.
AscTrend buying arrow.
Candle under rainbow.
AscTrend sales arrow.
Stop loss placed on the previous swing high / low.
Profit Target ratio stop loss minimu 1: 1.25.
In the images examples of trading.