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Averages > Rainbow_b

Article/Author: Stocks&Commodities Magazine, Traders Tips, 07/1997

Download: Rainbow_b.ela

File Includes:

Indicator - Rainbow_b
Function - Rainbow

Category: Indicator > Averages

Description:

Mel Widner introduced a colorful technique for plotting an indicator to signal trend changes. The indicator is derived from a consensus of trends that, when plotted in color, has the appearance of a rainbow.

As for the indicators themselves, there are a total of four. For the most part, the indicator code is simple. The first three indicators (Rainbow_a, Rainbow_b and Rainbow_c) are used to plot the rainbow lines 1 through 10 on the chart. If you prefer to have only eight rainbow lines on the chart, then only "Rainbow_b" and "Rainbow_c" would be plotted.

Usage:

The most popular method of interpreting a moving average is to compare the relationship between a moving average of the security's price with the security's price itself (or between several moving averages).




Inputs:

P - the data series to average
Len - the number of bars to average

EasyLanguage Code:
INPUTS: P(CLOSE), LEN(2);


IF CURRENTBAR > LEN *10 THEN BEGIN
PLOT1(RAINBOW(P, LEN, 8), "AVG8");
PLOT2(RAINBOW(P, LEN, 7), "AVG7");
PLOT3(RAINBOW(P, LEN, 6), "AVG6");
PLOT4(RAINBOW(P, LEN, 5), "AVG5");
END;


{COPYRIGHT C 1997, TECHNICAL ANALYSIS, INC.}