The Rainbow Indicator, Another Way to Follow the Trend.
Presenting and Coding a Complete Trend-Following Indicator in Python.
The Rainbow Indicator is a mix between a trend-following and a contrarian system. It is a combination of Smoothed Moving Averages that are used together to confirm a beginning or end of a trend. In this article, we will build the Rainbow Indicator from scratch in Python.
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The Concept of Moving Averages
Moving averages help us confirm and ride the trend. They are the most known technical indicator and this is because of their simplicity and their proven track record of adding value to the analyses. We can…
