Hi Delta,Ok the Rainbow is comprised of many many many moving...

Hi Delta,

Ok the Rainbow is comprised of many many many moving averages.

All the moving averages (MA's) are all different time frames that follow the same path - or one path - of price action and hence price direction.

Think of all these moving averages as a separate piece that make up an orchestra. Each their own instrument but when put together create a pattern, or sequence of patterns that form a trend. These averages just follow that trend.

As time progresses and a trend emerges, then these averages just mathematically follow suit.

But the beauty of the rainbow is that you can at a quick glance, see all time frames and the direction in which these averages are heading.

At the moment the average price from a 1 day average to a 100 day average are heading up. So the probability of a continuing trend is still very strong.

Once a trend is established then its a lot harder to break something that has already got a foothold on the general herd mentality. And herd mentality creates a trend. It human nature to trend. Humans do not like confrontation and prefer over time, unity. Thats how financial markets tend to operate since the Roman empire.

I like the VPG story to date.

I hope this helps.

Cheers
Babylon