I currently elaborate Rainbow system with a hidden hope that I will be able to create EA with that (I have a lot of experiance with reating EA so if someone finds a good precisely described algorithm I'll be happy to collaborate).
I understand that Reainbow is all about squeeze and expload and a direction the explosion happens.
So... I've created some indicators that can be used as a base for creation of signals.
It's not that the difference between value of longer MA and shorter is the maximum of the range. Some MA-s with periods between them can go out of ther range.
So, this indicator shows the vertical distance betweeen currently higgest MA and lowest.
Shows the number of raising Moving Averages to falling. Positive number - more raising; negative - more falling.
This one takes all MA-s from range specified and draws:
- blue: average distance between each pair of closest (considering periods) MA-s.
- yellow: similar to blue but the distanse is directional. Actually, this one is more usefull.
JMA is also needed.
There's maFunction in code so you can switch MA function (normal iMA or JMA).
Notice: Pay lot of attention to periods you choose and don't try to play with signal crossing signal becouse that have different ranges of values depending on range of MA chosen.
PS. AverageMaDistance (directional) with JMA as MA function) looks better than RSI.
Sorry the attachments are working not right.
Guppy Multiple Moving Average:
- Daryl Guppy GMMA�s: thread with some new indicators;
- GMMA Trading System is here;
- indicators and system explanation is here: Guppy MMA oscillator is on this post; Guppy MMA oscillator how-to-use documentation is on this post.
- RainbowMMA thread is here;
Guppy MACD: the thread.
For some reasons it didn't attach it right. Here are the indicators.
cool reference. I just want to point out the this thread is not about the rainbow but the custom indicators i want to share that are oscilators that help spot right point without the need for magnifying glass.
Please enable the necessary setting in your browser, otherwise you will not be able to log in.