In the article “Rainbow charts,” author Mel Widner introduces
a colorful technique for plotting an oscillator to signal trend changes. The oscillator is derived from a consensus of trends that, when plotted in color, has the appearance of a rainbow.
Using a few studies and functions in TradeStation, the rainbow lines and rainbow oscillator can be developed in
Easy Language. As always, the functions should be devel-oped
first. For the indicators themselves, special formatting
is required for each. An outline of the recommended format
is given after each set of indicator code.
Below is the Power Editor code for the first function,
“Rainbow.” This function performs the basic calculations for
the moving averages that make up the rainbow. ...continuded