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Gator Rainbow Momentum Trend Forex Trading Strategy

Good forex traders are not good because they know how to trade any currency pair in any market conditions at any time. On the contrary, they are great traders because they know how to choose the best currency pairs to trade at any given time. This is because while all market conditions are tradable, some market conditions are easier to trade than others. Great traders know how to control themselves when the market isn't showing good odds and know when to step on the gas when the market is easy to trade with relatively high probability.

A trending market is one of the easiest markets to trade. Traders can easily see which way the market is moving just by looking at the chart. Therefore, most traders are more inclined to trade in the direction of the trend. This then pressures the price to move further in the direction of the trend.

Another market scenario that is also very easy to trade is one where the market is showing signs of strong momentum. Under these conditions, prices move quickly in one direction, often resulting in large price movements in just one candle. This is a strong signal that the price is likely to move in the same direction for the next several candles.

The Gator Rainbow Momentum Trend Forex trading strategy is a strategy that combines trend following strategy and momentum trading strategy. This allows traders to take advantage of the high probability trading setups available during trend-following market conditions and to identify specific high probability entry points that occur during momentum trading scenarios.

MMA Rainbow 05

Rainbow MMA 05 is a specialized technical indicator based on several moving averages.

The moving average has always been one of the leading trend-following indicators used by many technical traders. This allows them to see trends based on the moving average of the price. 

One of the most common ways traders use moving averages to identify trends is to use several moving averages with different sensitivity to price movements based on the number of periods covered. When the faster moving average is above the slower moving average, the trend is considered bullish. On the other hand, when the faster moving average is below the slower moving average, the trend is down.

Rainbow MMA 05 is based on the above concept. It consists of 6 moving average lines with different sensitivities. The faster moving average line is light green while the slower moving average line is pink. When the light green line is above the pink line, the trend is bullish. When the light green line is below the pink line, the trend is down.

R Gator is a technical indicator based on Bill Williams' Alligator trading strategy.

Bill William's Alligator Strategy uses three Smoothed Moving Average (SMMA) lines. The Jaw line is a 13 bar SMMA line, Teeth is an 8 bar SMMA line, while the Lips is a 5 bar SMMA line. The behavior of these three lines will indicate the nature of market conditions. When the three routes experience congestion, the market is said to be jammed or saturated. If the line starts to widen then the market is said to be trending or open mouth. If the line starts to shrink, then people are talking about contraction or renewed saturation of the market.

R Gator automatically draws these three lines to help traders see the current state of the market. The jawline is blue, the teeth are green, and the lips are red.

DeMarker View

The DeMarker (DeM) indicator is a technical indicator that is part of the Oscillator family of indicators. It attempts to objectively identify demand for the underlying asset by comparing recent highs and lows with historical highs and lows. Based on this, an oscillator is then drawn which traders can use to identify market directional bias.

Unlike the RSI, the DeM indicator uses the period's high and low instead of the closing price. This allows traders to take into account any price movements within the bars.

The indicator draws an oscillator line which can range from 0 to 1. The markers are placed at the levels of 0.3, 0.5 and 0.7. A line falling below 0.3 indicates oversold market conditions, while a line falling above 0.7 indicates overbought market conditions. A line below 0.5 indicates a bearish bias, while a line above 0.5 indicates a bullish bias.