Code: Select all
( if you look at the code you will have a good idea how it works) I have used the rainbow for years but have modified Wickers rules to allow for more trading opportunities. Each trader must trade within their experience level and comfort zone. Just installed it but have not used it yet.
There seems to be discussion regarding The Wicker Rules. IMHO each trader should learn the basics and then find what works for them and make the system "Their Own. "
What works for me is to:
1) Check Rainbow Trend 5m & 2 t/fs higher
2) Above/Below 20 & 50 Ma & previous high/low candle (20 MA and 50 MA many times will act as real time support & resistance) I usually stay away from a trade if price is between these 2 MA's for a period of time and not moving through them.
3) Trix Green/Red & above/below 0 line
4) Check Fib support/resistance
5) Distance to/from support/resistance & 200 MA and Open line. (price likes to hang around the 200 Ma and many times during the day will head for this MA)
6) Lag RSI from 0.85 and/or 0.15 up or down
7) Time to News announcements ( have alert signal 30min and 5min to stay out)
8) Divergence on chart/TRIX
9) Time to Hour candle (if you watch a hour chart you will notice that there is usually a big move at the beginning of that candle)
Some trading systems are built around the hour candle only. I personally do not trade only the hour candle but watch the time
to that candle and used with the rainbow and obove checks gives me a edge.
When I am comfortable with above conditions I go long or short and only use stops as an emergency (computer crashes, war or such). I happen to have the time to watch and manage each trade.
Sounds like alot of things to do, but with screen time and experience takes only seconds and becomes second nature. Through the years, like most, I have tried about every system out there and have always come back to Wickers Rainbow. The rainbow clearly depicts the trend and illustrates true from false breakouts.
As I said earlier, this works for me. I used to scalp nothing but 1m charts but changed to 5m timeframe using above rules and my trading has improved immensely.
Maybe some bits or pieces of these comments will help some traders design a system that works for them.
I have been away from this thread for some time so this indie might be old news around here but I just came across it. If it has already been discussed, I apologize for the late post!
Note: I installed this indie after market close so it does not reflect current price action.
Regards and Good Trading only my 2 cents!
Cigarguy from forexfactory 
