Rainbow Drift Beta

math_rave Updated   
Rainbow Drift Beta is an indicator that detects the triggers of long and short positions at any TF.

It's based on two different type of approaches to the EMAs periods:

- Classic EMAs periods: 10 and 50
- Cycle EMAs perdios: 16, 64 and 256

The 256 period EMA (Annual Cycle) detects the trend: if the EMA 64 (Three-Weekly Cycle) is above, it shows an uptrend; while the EMA 64 is below, it means that the price action is in downtrend.

10 and 16 periods EMAs are working together as well as the 50 and the 64. The first couple reacts faster than the second one and as soon as the 10 is above the 16, the band shows the first attempt of the price action to go in the uptrend direction. The same concept is applied to the second couple (50, 64): when EMA 50 > EMA 64 it's a confirmation of the faster EMAs long direction. Viceverca happens for the downtrend but with the same concept.

As the EMA periods taken in consideration are quite often a sensitive level of reaction of the price, the indicator detects when there is trigger of a long or a short set up and plots a label on the chart. It's possibile to set up an alert as well.

Quite important, the indicator is looking for sideways patterns as the breakout of them shows a clear direction of the price.

Moreover, in order to privide the first and the best entry possibile, the indicator has a function that is triggering only one time as the trend reverted: for example, a long entry on the EMA 10-16 happens only one time since they crossover the EMA 64.

As included in the name, this is a beta version and new improvements will be added in the near future like suggested price entry, SL and TP, and the focus of the development is to avoid as much as possibile the false triggers.

Of course the best way to improve the code is to receive the users' feedbacks, so please feel free to post your comments and questions.
Release Notes:
This is the first update of the previous script with the following changes:

- I have prefered to emphasize the cycle periods for the EMAs instead of the classic ones
- The long and short signals are provided now with a suggested entry and a suggested stop loss
- The aspect of the indicator now more clean as it's showing just the long trend EMA that change the color following the trend of the price action
- A kind remind is important as I want to stress that this is a trend-following indicator that works very well when a new trend starts but provides some fake signals when the price action is sideway
- The next update will be focused on how to find out a good solution to remove the noise: your feedbacks will be very usefull in order to achieve this goal
- Last but not least, you are able to set up different alerts based on different TF
Release Notes:
From Beta to just "Rainbow Drift".

Thank to all the Trading View community.
Release Notes:
Version 1.01: same script of the latest update but with the alerts name issue sorted out.

PS: As the first publication, the name remains "Rainbow Drift Beta".
Release Notes:
Rainbow Drift Beta 1.02

Bug solved.
Release Notes:
Hey Traders, this latest updete has been studied for the developing of the following features:

- Customized Menu
- Scalping, Intraday or Middle Range trading option (the indicator works only with specific TF)
- 2 type of Market: Crypto or Stocks & Forex
- Adaptive EMA's period based on the TF chart and Market
- A new definition of Trend and Flow of the price action
- Sideway detection option
- Higher TF OHLC and 5 period EMA
- Trading information table
- 3 type of different alerts

Please continue to provide your feedbacks in order to continue to improve this indicator for a better trading.
Release Notes:
This latest update provide a cleaner view of the price action and provides long/short triggers only on M5 and H1 timeframes as these 2 TF offer a better control of the trading positions.
Release Notes:
Bug fixed.
Custum HT EMA period.
Support and resistance levels on long/short triggers.
Pivot points added.
H4 timeframe available.
BNF triggers on daily chart added.
Buy the dip levels on daily chart added.
Close to ATH/ATL on weekly chart added.
Release Notes:
Bug fixed.
Bright colors.
Larger size of the font used for the table.
Release Notes:
Text Size Option included.
Release Notes:
The plot of S and L labels now refers to the trigger bar.

Best case use: enter your trade on the open price of the following trigger bar and place your stop loss on the wick belonging to the trigger bar.
Release Notes:
Bug Fixed.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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