INGOT'S RAINBOW ... A Position Trading Strategy

[dperfectone]

Originally Posted by LyallNZ

Over the last week I have read every post in this thread several times, copied Ingot's posts and pasted tem into a word document so I could read them over several more times. Entered the Stochastic lines and colours and the EMA lines and colours etc exactly as instructed and applying them to the EUR/USD, USD/CHF,USD/JPY and GBP/USD charts. Have spent a long time just looking at the charts and getting a feel for what's going on.
Just tonight entered a sell trade on the JPY and a sell on the CHF and it looks like a buy on the EUR is coming soon. Both the JPY and the CHF are past being a neat rope and are a little unravelled but still nicely combed and moving in the direction of the trend. If the EUR heads up and I go long that will also be with the trend. As I write the extra thick line on the Stochastic thing, the BS line, is pointing up, just waiting for it to cross the line to enter my order.
My other trades are looking good but will go to bed and not just grab sort term pips.
Ingot - I think you are fantastic. Thank you for not just what looks like being a very profitable trading system but lots of good advise for life. And I am thanking God too. I am a pastor so share your love of Jesus, family and life.
Am glad to make my first post to this thread and hope to have stories to tell in the days to come.

Hi and good day. I am just dropping by to say that I also shares the same faith with you. I thank Ingot for bringing up a system like this. As for trading everyday, sometimes we loose the very most important things just because we are in the computer, looking for the trade that will give us nice good looking pips. But the reality is that, we are loosing time for our family, time for ourselves. Maybe this is not true for all, but I believe most of the times this happens.

I have never found a system like this before. And that is why I was excited when I saw this on the forum . I finished reading everything in a single day. And opened my account and tested the system in " Live ". I left my computer, and did my daily routine ( went to the garden, do the cooking for my family, and chatting with them in a nice conversation etc. ) As so much for my surprise I went back and look what happened... +100 pips. You know why I was surprised? Because I tested many systems before. Most of them will allow you to be in the computer almost everyday and just got some 20 pips and that's it. But this one, is easy to use and just leave it and then after a day just look at it. . . , But maybe this is not true for all, Maybe this is just effective for those people who want to have their life back and not for the scalpers.

So, I think I have said many, but just to let everyone know that there are more better ways to live life, and it is not just money that is important. At least we have a family to take care, friends to meet, and make contributions in our society.

We'll go far using this system ( I guess ). Thank you Ingot and cheers to all.

Have a nice day guys.

[Cdawg]

While this differs from Ingots orignal trading style for this Rainbow technique, as I find i'm not patient enough to trade 3 or 4 times a week or month.

I have been using this rainbow on the GBP/JPY or the Geppy or the Beast, what ever you want to call her for the last two months or so.

What do i do different? Well i use it onthe 5 minute TF. I keep in mind the overall trend, but trade the 5 minte TF trend, both up and down. For those of you who are familar with the geppy, you'll know how volitile it can be, especially now.

What i have found, is that either direction, when the stochs rope and peak, the trade is just about always good for 20-30pips (now bear in mind the spread of your broker, mine is 6 but i've seen it alot higher).

So essentially I am using this technique to scalp on the geppy, though my scalp is looking for 50pips min. As mentioned, almost always, the trade will move 20-30 pips in the direction, at +20 (use your discretion here depending on how volitle the market is) pips set your SL to B/E.

As the trade progresses, and it reaches the +50 pip level, I close off 1/2 the trade and bank at least 50 pips and usually move the S/L to +2 to 10pips. The remaining 1/2 of the trade is free to ride, and often times it will come back to modest profit or shoot off several 100 pips in your favour.

Occasionally I will close out the trade manually same before the 50 pip level depending on the stochs.

So try it out, Demo first of course! The results might surprise you.

[Ingot54]

Hi Folks

I have dropped in to tidy up unfinished business.

Thank you for the great positive attitude maintained in the thread, and all the kind things spoken. Very encouraging.

I apologise for leaving it this way - but in a sense it has been good - many of you have seized the initiative and come up with some great ways to vary this approach to suit your personal style.

That's how it should be - so that you "own" your own method. What we now have is the bones of an approach that not only gives you back your life (less screen time) but offers the patient and disciplined amongst us, an opportunity to pick the fruit from the trees of good setups.

I am as undisciplined as anyone at times - I find it a constant pressure to be patient and not to force trades that really are not there.

I will read the thread carefully and answer questions in the next day or two. Please post your negative experiences as well as your successes - nothing to whitewash here - and certainly nothing to gain by showing only successful outcomes.

Long term charts are where the money is. Short term is more adrenalin-powered, but at my age, adrenalin is not my friend!

And for those who love to trade 1H charts and shorter, you may be robbing yourself of quite a LOT of money.

There are many charts available for FX trading. If you set them all up on 4H or Daily views, you can eyeball through them and cherry-pick your trades. On any day you might find two of interest, and maybe one to trade.

At the same time, other open trades may be nearing the end of their runs, and ready to exit. This is an organised and disciplined way to approach trading - relatively stress free and allows optimum time to manage the trades that are open.

If you are consumed by one or two ST trades, you really miss what is going on in the longer TF - as well as what else is going on in life around you.

I think the choice is easy - but once made - commit to it - develop it and own it.

The very first post in this thread, I posed the question: "10,000 pips per year?"

What do you think now?

[Cdawg]

The very first post in this thread, I posed the question: "10,000 pips per year?"

What do you think now?

I can atest to that, while i have modified the technique to suite my personality, I've been using the basic fundamentals of it since nov 07. It took some time to find just what kind of trader I am, and basically i have always used the rainbow as my starting point as I developed as a trader.

So 15 months later, i still use the rainbow, with some modifications to suite me - Gan, 50EMA - I basically trade it off the 5 to 15min TF. over the last 4-5 months, its been pretty easy, already over 10k+ pips (true pips) since september.

Glad to see your back Ignot, cheers and thanks

[davew]

Hello people. I am a newbie. Read entire rainbow thread. A couple questions. Ingot, I see on incredible charts you have moved on from rainbow to "Price Action". Why and I have seached for Price Action but too common a term. Also, cdawg, can you elaborate on how you use the 50 day ama and how else you cjanged rainbow? And lastly, why is there so little interest in rainbow? Thanks a bunch guys. Dave davewooldridge@comcast.net

[gododdin]

Hi - as an unsuccessful scalper with some painful experiences under my belt I too was very interested in this thread and have read the whole thing through twice. I realise now that what I've been trying to do in trading 5 and 15 min charts is to drive a racing car, when I haven't even passed my driving test yet! I was sure to crash and burn sooner or later. I need to slow down and take time, and 'Ingot's Rainbow' seems a good way to do it. This is especially true as I work full time and have a family and need a strategy that fits in around those important committments.

I'm concerned however to hear that Ingot has by the sound of it moved on to a different 'paradigm' . There was some talk in the thread somewhere of preparing a pdf summary of the strategy. Any one know if that was ever done? Also is anyone currently trading this strategy on the longer term (daily/weekly) charts and doing okay?

I think the reason this thread doesn't get the attention it deserves is that it isn't a sexy and exciting 'racing car'. Sounds like it's more of a Toyota - but as a friend of mine says, "My Toyota starts first time and gets me from A to B, and that's exciting enough for me...!" I'll second that.

Let's see if we can get under the bonnet and rev her up again...

[davew]

gododdin I am trading msgs with ingot . He has surfaced on another site. Email me and I will tell you what it is, dont want to violate any policy here. He strayed from rainbow to get more action sort of, and is looking at wps 4hr system and price action from james 16.

[Ingot54]

Originally Posted by davew

gododdin I am trading msgs with ingot . He has surfaced on another site. Email me and I will tell you what it is, dont want to violate any policy here. He strayed from rainbow to get more action sort of, and is looking at wps 4hr system and price action from james 16.

Thanks to Dave, he has found me hiding on another forum or two.

I'll be brutally honest with you all and with myself:

A couple of friends of mine were successfully trading Indices and Gold and Oil over the past 15 months or so, and my greed caused me to go after the quick profits. I did make AUD$11k in one session, and instantly my head went off and on went a pumpkin!

Pumpkinheads don't think!

It wasn't long after that, I lost that $11k and another $8k, and more. I allowed a trade in Oil and another in Gold to go against me, thinking like a greedy fool - thinking I knew where the trend was! But both trades went against me right through support, and when I logged in next morning, I had nothing left in my account.

I was disillusioned with trading, depressed, and my confidence destroyed. My wife was angry with me - five years of work ... gone! I have held my ground in the sense that I still believe in the method I have proposed here, but I feel like a true Prodigal - beaten down, but not quite out.

I am so glad I started this thread all those months ago. It is here to remind me that there IS a method to trade the financial markets. And there CAN be success if only we/I stick to strict rules and discipline.

Right now - to be candid - I am still very much depressed. I have not rebuilt my account, nor even traded for over 8 months. I lost the plot.

Now that I have come down from the pedestal, and you know I am human, we can get on with working together and complete this method.

I am very grateful to those of you who continued the thread, seeking answers and evolving where you could. I think a couple of things need to be defined yet - EXITS and profit-taking to name one area.

There are so many ways to do this - we can talk about them soon. But I want to reaffirm that this method - like many other Long-Term methods - is the best and easiest way to go.

I have a bit to deal with right now - aging parents who are at turning points in their health - and my own backyard needs attention.

But let's keep the thread going in a very honest and open way - no agenda and no rubbish. I know we will have a world's best method by continuing from here, with your help.

In the meantime - here is something different from trading, but very poignant for us all in these times:

Let's briefly move away from markets to people. Many of you will know of John Steinbeck, who wrote the Pulitzer Prize-winning book: "The Grapes of Wrath" (he wrote many other works - incl : East of Eden, The Pearl, Of Mice and Men, Cannery Row etc).

Steinbech had a unique style and an ability to reach out and touch our hearts and minds.

But his book: "The Grapes of Wrath" had a profound effect on me - so much so that I see his characters to this day in many of the folk I see around me. I see their struggles in the midst of injustice, and the love and warmth in their families despite their poverty and hardship. The authorities can NOT take away family love, or the loyalty of a mate.

Keep in mind (and this is for me as well) that we have a better vantage point than those in authority over us.

THEY are slaves to their own masters, often going against the basic principles of compassion and kindness in their evil and grasping attempts to turn us into slaves for their own enrichment.

THEY are under an illusion that the one who ends with all the toys is the winner. And there are regulations and laws enacted that go against the principles of decency and a fair go for all - and many of them are acting against their own remaining consciences.

But despite this, people are STILL unbeaten.
People STILL retain the spirit to overcome and improve their lot in life.

I bring you this rant because in these difficult times - I know you folk in the USA and UK are really hurting much more than we are here in Oz - you need to be reminded of the bigger picture, and that we do have a greater destiny than just existing to make money. Money is only as good as it is useful for one day ... in a nutshell.

Can I encourage you to go to your library, or bookstore, and grab a copy of "The Grapes of Wrath" or even "The Pearl" and begin to get in touch with some of the deeper things, that Steinbeck brought up to the level of human consciousness through that great novel 70 years ago?

Rather than bore you with my own fav quotes - have a look here - if admin permit it - and have a prelude to the book:

.bookrags.com/notes/gow/QUO.htm

Shortly I'll be back and begin a fresh assault on completing this method. I have indeed been looking at Price Action bars (and Candles) imagining where they can be used to advantage - if at all. I think there is a place for this - but we'll see. There is an interesting exit strategy from the WPS system, but it too has its little problems (repainting etc).

More later ...

Thank you to Dave for resuscitating me!

[gododdin]

Welcome back Ingot! I can truly identify with what you wrote below (as I think could anyone who has been trading for more than a couple of weeks!). I too have suffered losses (though not on the same scale simply because I just didn't have it!).

I read "Grapes of Wrath" decades ago in my student days but I will now return to it, having matured significantly since then (one would hope!).

It's long term trades for me from now on, though I shall be alert for the temptation to move to shorter time scales and squash it thoroughly when it arises. It is very difficult though when you hear of someone else's success story.

I'm also participating in the J16 thread on 'another forum' which I'm sure you're aware of (not sure what the rules are here for that sort of thing) and it too looks very promising at the longer time scales.

[Ingot54]

Today being Monday is not always the best day to enter trades because the market will feint and thrust as it jostles for its direction for the day or indeed for the week.

I want to discuss a couple of things in this session if I can - one being leverage, and the other being a bit more exciting ... some trades that are maturing and getting ready for our entry. I'll leave the leverage for my next post.

I have just scanned through 25 charts using the rainbow + MTF Stochastic template, and I have identified 10 pairs that will soon be ripe for picking. As I was doing very early in the history of this thread, I have left the candles insitu, to make things more visual.

Here are the candidates to follow today and tomorrow ... and maybe for Wednesday if they are a bit slow to develop:

EURGBP
EURCHF
EURNZD
NZDUSD
NZDCHF
NZDJPY
AUDNZD
AUDCAD
AUDCHF
GBPNZD

I am only looking at the DAILY charts, and paying particular attention to the MTF (Multi-Time Frame) Stochastic. What I am seeing is the WEEKLY or MONTHLY chart in a good trend, but the DAILY currently GOING AGAINST THIS TREND.

Further, the MTF Stoch has reached (or is about to reach) the 23.6 or the 76.4 level. These Stochs are very tight generally (some are combed, wider, but orderly) and to me it seems they will reverse soon as the overbought or oversold condition corrects itself.

The most excellent thing about these 10 pairs, is that AS THEY FALL INTO LINE WITH THE BACKGROUND TREND, THE MOVE IS LIKELY TO BE LONG AND FAST.

Many of you would have heard the term "coiled spring" - used frequently to describe the energy being built up as charts form the consolidation pattern and a breakout seems imminent. Following this coiled-spring metaphor, I am seeing energy building up for a powerful reversal in each of these 10 pairs.

Let's have a look at some charts:

Attached are three - I have just been called in to work so will cut this short for now. But you can do this exercise for yourselves looking at the above charts.