Download: Rainbow_c.ela
File Includes:
Indicator - Rainbow_c
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, 4), "AVG4");
PLOT2(RAINBOW(P, LEN, 3), "AVG3");
PLOT3(RAINBOW(P, LEN, 2), "AVG2");
PLOT4(RAINBOW(P, LEN, 1), "AVG1");
END;
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