🌈 Rainbow Technometer - Multi Timeframe WYCKOFF ARSENAL
The purpose of the Technometer is to provide a mathematical indication of the degree to which the market is overbought or oversold. The value of the Technometer could be as high as 100 or as low as 0. The other possible values would represent degrees of overbought or oversold.
In Rainbow form, the Technometer could also be used as a trend-following indicator.
The Rainbow Technometer can be used on any available timeframes and assets with volume data. It is a combination of Technometer instances of different lengths that are plotted on the same chart. The confluence zones can hint at a price reversal and help estimate the trend strength.
The Rainbow Technometer can be combined with other technical analysis tools as a trend-following indicator. When the trend is strong and the other indicators used to determine entry points send a bullish or a bearish signal, a position can be opened. When the trend is weak, opening new positions should not be to consider.
The Rainbow Technometer can also be used on its own. The angles of the Rainbow will hint at the trend strength. The steeper the curve, the stronger the trend. The flatter the curve, the weaker the trend. A Buy position can be opened in the beginning of a strong positive trend. A Sell position can be opened in the beginning of a strong negative trend.
During a strong trend, short-lived retracements can be found, and it is possible to enter a position in the direction of the general trend against the retracement.
The Rainbow mode can be experienced with the Multi RSI indicator as well.