435# MA Rainbow
MA Rainbow with Asctrend
MA Rainbow with Asctrend is a trend following strategy based on the sets of moving averages.
Time Frame 5 min or higher.
MA Shade 180-360;
Exponential moving average 10 periods, close;
Exponential moving average 12 periods, open;
Trades only in direction of the trend.
Tren up= MA Shade 180-360 < Rainbow 08 < Rainbow 07 < Rainbow 06< 10 EMA < 12 EMA
Long entry when appears buy Arrow Asctrend.
Trend Down= MA Shade 180-360 > Rainbow 08 > Rainbow 07 > Rainbow 06 > 10 EMA > 12 EMA
Short entry when appears Sell Arrow Asctrend.
The use of MA Shade 180-360 is optional. I would recommend using because it can filter out more false signals.
Initial stop loss on the previous swing.
Make profit on the fibo level or profit target ratio 1.5 stop loss.