The Rainbow Pattern cBot allow us to customize a particular pattern made out of UP and Down candles then place a Long(Buy) or a Short(Sell) trade .

An UP candle(green) has the close greater than the open and a Down candle(red) has the close smaller than the open.

When we create the pattern that will trigger a Long(Buy) or a Short(Sell) trade, we use number 1 for UP candle and number 0 for Down candle. The series of 1 and 0 numbers will be placed in the Pattern (1 - UP, 0 - Down) field, Parameters menu.

Rainbow Pattern Example 1:

The picture below shows a series of four UP candles and  the last one Down candle.

The setting for this pattern is: Pattern (1 - UP, 0 - Down) = 11110

The direction of the trade triggered by the pattern will be placed in the field Buy ? = Yes, Parameters menu.

For Long(Buy) trade → Buy ? = Yes      

For Short(Sell) trade → Buy ? = No     

There are two scenarios for 11110 pattern:

a). Go Long(Buy) when a series of four UP candles and  the last one Down candle.

Parameters:

Quantity (Lots) = 0.1

Take Profit = 15 pips

Stop Loss = 15 pips

Pattern (1 - UP, 0 - Down) = 11110

Buy ? = Yes

See picture below.

b).Go Short(Sell) when a series of four UP candles and  the last one Down candle.

Parameters:

Quantity (Lots) = 0.1

Take Profit = 15 pips

Stop Loss = 15 pips

Pattern (1 - UP, 0 - Down) = 11110

Buy ? = No

See picture below.