Rainbow Road [kingthies]

Rainbow Road [kingthies]

Rainbow Road is a trend-structure and momentum visualization tool built around a cascading chain of smoothed simple moving averages. Instead of plotting independent moving averages on price, each line is progressively smoothed from the prior one using the same length, creating a layered “road” that reveals trend strength, direction, and transition with exceptional clarity.

OVERVIEW
Rainbow Road visualizes trend quality using a spectrum of fast-to-slow moving averages derived from one another. Because each average is smoothed from the prior line, the indicator forms a continuous structure rather than a collection of unrelated signals. This makes trend alignment, momentum expansion, and compression immediately visible.

HOW IT WORKS

• The first average is a Simple Moving Average of price
  
• Each subsequent average is an SMA of the previous average using the same length
  
• This creates a cascading chain of averages with increasing smoothness
  
• Colors progress from red (fastest) to purple (slowest) to represent trend hierarchy
  

HOW TO READ IT

• Strong Trend: All averages are aligned and expanding in the same direction
  
• Acceleration: Spacing between averages increases
  
• Deceleration: Spacing narrows while direction remains intact
  
• Consolidation: Averages converge and overlap
  
• Reversal Risk: Faster averages cross back through the slowest average
  

TREND CONTEXT
The optional fill between the fastest and slowest averages visualizes overall trend pressure. Expanding fill suggests strengthening momentum, while contracting fill highlights compression and potential regime change.

USE CASES

• Trend confirmation and directional bias
  
• Momentum expansion vs compression analysis
  
• Identifying trend exhaustion and early reversal zones
  
• Contextual filtering for entries and exits
  

WHY RAINBOW ROAD
Traditional moving average stacks often produce clutter and redundant signals. Rainbow Road focuses on structure and flow, helping traders evaluate the quality of a trend rather than reacting to individual crossovers.

BEST USED WITH

• Price action and market structure
  
• Support and resistance
  
• Volatility or range-based tools
  
• Higher-timeframe trend bias
  

Rainbow Road is designed to sit quietly on your chart and clearly communicate whether the market is flowing, stalling, or preparing to turn.