Trading Signals Based on Rainbow Pattern You need to know

A trade signal is a catalyst for behavior produced by research, either to buy or to sell a defense or other commodity. That analysis may be generated by humans using technical indicators, or it may be generated using market action-based mathematical algorithms, possibly in combination with other market factors such as economic indicators. 

A pattern mostly used in market analysis is the rainbow pattern Olymp trade. The rainbow pattern is the graphical method that includes the usage of three distinct cycles of linear moving averages. Next with the blue color six-time, second with the yellow color 14 times and third with the red color 26 eras. In this graphical method, Blueline is above all others with a period of six. The blue line is beneath the yellow line, for a time of 14. The Redline is behind the others, with a time of 26. The junction of the blue line with the six-period and the 14-period yellow line is the point of business entry and choice buying for most traders.


Trading Strategy of Rainbow Pattern on the Olymp Trade

The pattern of the rainbow is a graphic pattern used in market analysis. It consists of three moveable exponential averages at a separate period. When you select the EMA from the list of indicators, its default parameters are period 10 and yellow color. So you have to manually change them by clicking a pen icon. The first EMA with period 6 should be blue, the second yellow with period 14. 

The rainbow pattern Olymp trade trader must have to notice the signals and the trader must wait until entry signals. Most traders believe that the guidelines below are fairly good signs the price should sink. The graphic design employs three linear moving averages over different periods. The first is the six-year blue color; the second is the 14-yellow, and the third is 26-red.

 Traders must track the lines and brace for feedback signals. Most speculators believe that the following instructions are relatively clear signs that the price should drop Look at the map below. Next the blue line moves past the others with period 6. The Yellow below is the EMA, loop 14. The red one of 26 runs lies below. The EMA6 blue then moves into the EMA14 cyan. 

This is a strong starting point to take a down place. Let’s refer to the map below, now. It gives signs for wanting to enter the exchange. The centrally positioned red EMA26 is at its height. The yellow EMA14 is in the center. Beneath them, all is blue EMA6. Though measuring the simple, a moving average is quick, the best picture isn’t necessarily how prices have changed. The extra moving average is the incremental moving average, comparable to the basic moving average but is calculated differently.

Trading Signals Based on Rainbow Pattern Olymp Trade

Most participants believe that in the Olympic rainbow system of trading the signals of a decline in asset prices proceed strongly. For a time of six the blue line is above everyone else. The yellow line with the time of 14 is below the blue line.

 For a total of 26, the red line is beside all the others. For most traders, the intersection of the 14th period between the blue line and the sixth and yellow line is consumer entry points and the purchasing choice. If the blue lines of six are below each other, the yellow lines with a period of 14 are above the blue lines, there is a greater likelihood of price changes. For a period of twenty-six the red line will be above most. For most traders, the blue line intersections are with six, and the yellow line with 14. The entrance point to the business and the right to purchase.

 For opening a short position first, open a competitive short design location based on the shortest time signal; open the 2nd position after resistance testing and validation and then bounce through the support and confirm the disconnection and add the third position. 

If Olymp trade shows a short rainbow pattern then open the small position. Additionally, then open smaller positions with the signal on the shortest amount of time method when a profitable long rainbow pattern appears Olympic exchange, then open 2nd place after re-testing and verifying aid, and when the resistor breaks, retracts and confirms the crack, open 3rd.


The rainbow pattern is an important concept of a single average of motion. When several moving averages for varying time intervals are used together, they may be viewed as their predictor. Traders can use rainbow for any time frame and asset. When overlaid on the price table, the rainbow pattern looks positively beautiful. It also can be paired with other technological research methods.