DARKINV™ Rainbow Engine v6

Candle Color Meanings

Every candle tells a story. The Rainbow Engine paints each bar with a specific color that tells you exactly what the engine sees right now — whether to enter, hold, warn, or exit. Learn these colors and the chart speaks directly to you.

▲ Entry Signal

BRIGHT GREEN — Call Signal!

All conditions aligned — MACD crossed up, ADX lifting above threshold, DI+ above DI-, RSI above threshold, volume surging. This is your GO signal for a call entry. Bar confirmed on close.

👉 Call entry right now

▼ Entry Signal

BRIGHT RED — Put Signal!

All conditions aligned bearish — MACD crossed down, ADX lifting, DI- above DI+, RSI below threshold, volume surging. This is your GO signal for a put entry. Bar confirmed on close.

👉 Put entry right now

⚠ Warning

YELLOW — Warning!

You are in a trade and the candle just flipped against your direction. The move might be slowing or reversing. Do NOT enter new trades. Watch if next candle recovers or confirms reversal.

👉 Stay alert — do not act yet

◆ Exit Signal

ORANGE — Exit Time!

Momentum ran out. ADX peaked and is bending down, DMI bending against trade. The engine is done with this trade. Do not hold through orange hoping it recovers.

👉 Close your trade — don't wait

◆▲ Reversal Forming · Futures/Forex/Crypto only

BLUE + RED BORDER — Reversal Call

Downtrend exhausted — ADX peaked and ticking down, MACD freshly crossed bullish. Not in a trade yet. Engine spotted a potential bull reversal. Wait for a green candle to confirm.

👉 Potential call — wait for green

◆▼ Reversal Forming · Futures/Forex/Crypto only

RED + GREEN BORDER — Reversal Put

Uptrend exhausted — ADX peaked and ticking down, MACD freshly crossed bearish. Not in a trade yet. Engine spotted a potential bear reversal. Wait for a red candle to confirm.

👉 Potential put — wait for red

▲ In Trade — High Volume

TEAL + PURPLE BORDER — Strong Call Move

In a call trade AND volume is surging above the SMA. Price is moving with you and the energy is confirmed. The move has fuel. Stay in — this is not the time to take early profits.

👉 Hold your call — strong move

▼ In Trade — High Volume

ROSE + PURPLE BORDER — Strong Put Move

In a put trade AND volume surging. The drop has energy and confirmation. This is the kind of move you stay in — not the time to take early profits.

👉 Hold your put — strong move

▲ In Trade — Normal Volume

SOFT TEAL — Holding Long

In a call trade, candle moving with you (bullish) but volume not surging. Trade is alive and healthy — no alarm, no exit signal. The trail is protecting you. Hold.

👉 Stay in — no exit signal yet

▼ In Trade — Normal Volume

SOFT ROSE — Holding Short

In a put trade, candle moving with you (bearish) but volume normal. The drop is happening but not with explosive volume yet. Stay in and manage your trade.

👉 Stay in — manage your trade

↑ Channel Breakout NEW v6

BRIGHT GREEN — Break Up!

Price just broke ABOVE the channel upper band — first bar of the breakout. Fires the moment price crosses the band intrabar, not at bar close. This is your earliest signal that a bullish breakout is forming. Watch for 3ATM to confirm entry.

👉 Potential call — watch for 3ATM FIRE

↓ Channel Breakout NEW v6

BRIGHT RED — Break Down!

Price just broke BELOW the channel lower band — first bar of the breakout. Fires the moment price crosses the band intrabar. Earliest signal of a bearish breakout forming. Watch for 3ATM to confirm put entry.

👉 Potential put — watch for 3ATM FIRE

⚠ Channel Condition NEW v5

AMBER GLOW — GRIND Warning

Price creeping slowly in one direction — tiny candle bodies, no ADX strength, no volume surge. Market is leaning but has no energy behind it. DO NOT enter on GRIND. Wait for the grind to break with real momentum before acting.

👉 Wait — no energy behind the move

— No Signal

BLACK + WHITE BORDER — No Signal

Nothing happening. Engine watching but not firing. Market is neutral or conditions are not aligned yet. Flat is a position. The best traders know when to do absolutely nothing.

👉 Wait — don't trade this candle

Scorecard — Every Row Explained

The scorecard is your dashboard. Each row reads one indicator in real time. When everything lines up, the Condition row fires. Learn to read each row independently — together they tell the complete story.

Row 1 · ◈ 3ATM Bundle NEW v6

3ATM — MACD + ADX + RSI Bundle

The core high-probability signal. When MACD, ADX, and RSI all align simultaneously, 3ATM fires READY. This is the prerequisite for a FIRE signal. Watch this row build from 1/3 → 2/3 → READY.

Reading	Meaning
READY	All three aligned for calls — look for FIRE
READY	All three aligned for puts — look for FIRE
2/3	Two of three aligned — building, watch closely
1/3	One of three aligned — early stage, wait

Row 2 · MACD

MACD Direction

The MACD line vs signal line — shows directional momentum and recent crossovers. Crossed = fresh signal. Bull/Bear = sustained bias.

Reading	Meaning
▲ CROSS	MACD just crossed above signal — fresh bullish momentum
▼ CROSS	MACD just crossed below signal — fresh bearish momentum
▲ BULL	MACD above signal — bullish bias sustained
▼ BEAR	MACD below signal — bearish bias sustained

Row 3 · ADX Condition

ADX — Trend Strength

ADX measures trend power. READY means building momentum. CONT. means trend is continuing bar by bar. BREAK means peak and reversal. No numbers shown — read the signal, not the math.

Reading	Meaning
WAIT	ADX below threshold or not actively rising — not ready
READY	ADX above threshold AND actively rising — trend building
CONT.	In trade, ADX still rising — trend continuing, stay in
BREAK	ADX hit peak and now bending down — prepare to exit

Row 4 · DMI

DMI — Direction

DI+ vs DI- shows which direction is winning. DI+ above DI- = bulls in control. DI- above DI+ = bears in control. Must align with your trade direction.

Reading	Meaning
DI+ > DI-	Buyers leading — call conditions supported
DI- > DI+	Sellers leading — put conditions supported

Row 5 · RSI

RSI — Momentum Level

RSI confirms the momentum environment. READY green = above call threshold. READY red = below put threshold. WAIT = neither zone. No numbers shown — the color is the signal.

Reading	Meaning
READY	RSI above call threshold — bullish momentum confirmed
READY	RSI below put threshold — bearish momentum confirmed
WAIT	RSI between thresholds — neutral, wait for alignment

Row 6 · Volume

Volume — Energy

Volume confirms if there is real energy behind the move. Updates tick by tick within each candle — you see volume state change in real time as the bar builds.

Reading	Meaning
SURGE UP	Volume above SMA on bullish bar — energy confirmed up
SURGE DN	Volume above SMA on bearish bar — energy confirmed down
Rising	Volume increasing bar over bar — building toward surge
Fading	Volume declining — momentum losing energy, watch exits

Row 7 · Momentum

Momentum — Speed

2-bar Rate of Change. Positive = price accelerating upward. Negative = price accelerating downward. When the momentum filter is ON, this must agree with your entry direction.

Reading	Meaning
UP MOM	Price accelerating upward — required for calls
DN MOM	Price accelerating downward — required for puts
Flat	ROC near zero — no acceleration in either direction

Row 8 · VIX UPDATED v5

VIX — Opposition Confirmation

VIX moves opposite to the market 96% of the time. TREND RED (VIX falling) confirms calls. TREND GREEN (VIX rising) confirms puts. The VIX color being the opposite of your trade is the confirmation. Requires VIX MACD, DMI, and RSI to all align.

Reading	Meaning
TREND RED	VIX falling (bearish on VIX) → NQ bullish → CONFIRMS CALLS
TREND GRN	VIX rising (bullish on VIX) → NQ bearish → CONFIRMS PUTS
WAIT	VIX conditions mixed — no clear opposition confirmation

Row 9 · VIXIN REMOVED v6 NEW v5

VIXIN — Live VIX Candle

Shows the VIX candle direction at this exact moment on your timeframe. A green square means VIX is up this bar (bearish for market). A red square means VIX is down this bar (bullish for market). One glance tells you if the VIX is helping or fighting your trade.

Reading	Meaning
UP ■	VIX candle bullish (up) → market under pressure
DN ■	VIX candle bearish (down) → market has support
— —	Doji — VIX flat this bar

Row 10 · Window UPDATED v5

Timing Window

Tracks the current minute within each 10-minute cycle (0–9). Anchor minutes are best for entry. Exit Zone minutes are best for managing and exiting. Exit zone minutes now also help trigger exits when warning conditions align.

Reading	Meaning
ANCHOR	Minutes 0, 1, or 8 — optimal entry timing
EXIT ZONE	Minutes 0, 3, or 7 — manage/exit your trade
2m · 4m · 6m	Current cycle minute — neither anchor nor zone

Row 11 · L/S Gate

Entry Gate

Shows which entry direction gate is fully open. When UP:ON — all call conditions are met and an entry can fire. When DN:ON — all put conditions met. Both off means waiting for alignment.

Reading	Meaning
UP:ON	Call gate open — all long conditions met
DN:ON	Put gate open — all short conditions met
UP:-- DN:--	Neither gate open — conditions not fully aligned

Row 12 · Zone NEW v6

Supply & Demand Zone State

Shows whether price is currently inside a tracked supply or demand zone, or at a breakout/retest. Three detection methods: pivot highs/lows, consolidation areas, and high-volume zones. Toggle each method and zone gate in settings.

Reading	Meaning
DEMAND	Price inside demand zone — buy opportunity area
SUPPLY	Price inside supply zone — sell opportunity area
BREAK UP	Price broke above supply zone with surge + momentum
BREAK DN	Price broke below demand zone with surge + momentum
RETEST UP	Price retesting broken supply as new support
NO ZONE	No active zone — 3ATM can still fire entries

Row 13 · Channel

Channel State

Detects whether price is ranging (channel active), breaking out, grinding slowly, or in normal trending conditions. GRIND is new in v5 — warns of slow drift with no energy.

Reading	Meaning
BREAK UP	Bullish breakout from channel with volume
BREAK DN	Bearish breakout from channel with volume
TIGHT	Channel range very narrow — extreme consolidation
RANGING	Channel active — price bouncing between bands
GRIND	Slow drift — tiny bodies, no energy. Wait it out.
NO	No channel — normal trending or no signal

Row 13 · NQ / YM Regime UPDATED v5

Market Regime

Measures NQ and YM point moves from the 9:30 AM RTH open (not the overnight open). This matches exactly what you see on TOS. Turn this ON for Futures/Options, leave OFF for Stocks/Forex/Crypto.

Reading	Meaning
GREEN	Both ≥ +100 pts from open — prime calls
MIX GREEN	Both positive, under +100 — bullish developing
GRIDLOCK	Spread ≤ 60 pts — no commitment, no entries
MIX RED	Both negative, above -100 — bearish developing
RED	Both ≤ -100 pts from open — prime puts
MIXED	One positive, one negative — disagreement, wait

Row 13 · SL / TP NEW v5

Stop Loss · Take Profit

Shows your current stop loss and take profit levels while in a trade. Updated automatically when a new entry fires. The breakeven system moves your SL to entry once you reach the profit trigger.

Reading	Meaning
SL 29,800 TP 29,920	In trade — current stop and target levels
—	Not in a trade — no levels active

Row 17 · Condition — Master Signal UPDATED v5

The Final Verdict

The bottom line. Fires ▲ FIRE / ▼ FIRE when 3ATM bundle aligns with session and momentum. Shows ▲ REV / ▼ REV for reversal setups. The Condition row uses confirmed volume from the previous bar so it lights up BEFORE bar close giving you time to prepare. Everything else shows a dash. This is what students act on. Simple, clean, unambiguous.

Reading	Meaning
▲ FIRE	CALL signal — all conditions met. Enter now.
▼ FIRE	PUT signal — all conditions met. Enter now.
▲ REV	Reversal call forming — wait for green confirmation
▼ REV	Reversal put forming — wait for red confirmation
—	No active signal. Wait.

Exit Types — Complete Guide

v5 has six exit mechanisms working together. The key innovation is the Chandelier Exit and Breakeven Protection — these two together prevent the "gave back profit" problem by protecting gains from the high water mark and locking in breakeven automatically.

Exit Type 1

○ Reversal Exit

Price crossed the ATR buffer against the trade AND the candle closed opposite. For calls: price below entry minus ATR buffer on a bearish close. Fires early when reversal is sudden.

Exit Type 2 · NEW v5

◆ Chandelier Exit

Price drops more than 2 ATRs from the highest high reached since entry (for calls) or rises 2 ATRs from the lowest low (for puts). This catches pullbacks from profit before they become losses. The key fix for "gave back my gains."

Exit Type 3

◆ Early Exit (ADX Peak)

ADX peaked above threshold in last N bars and is now ticking down. DMI bending against the trade. Trend momentum is exhausting — get out before the reversal completes.

Exit Type 4

◆◆ ADX Exit (Confirmed)

ADX declining for 2+ bars from its peak. Confirmed momentum exhaustion. Stronger signal than early exit. The scorecard ADX row will show BREAK in white when this is active.

Exit Type 5 · NEW v5

⏱ Exit Zone Exit

During exit zone minutes (0, 3, 7) — if you are in a trade AND a warning candle fires AND ADX is bending AND no volume surge — exit triggers. The timing window now does real work, not just display a label.

Exit Type 6 · Trail System

▼-T Trail Exit

Once price moves the Trail Trigger distance in your favor, the trailing stop activates. It then follows price at Trail Distance behind the peak. Any trade reaching the trigger level is protected from full loss.

Protection · NEW v5

🔒 Breakeven Protection

Once price moves the Breakeven Trigger distance in profit, the stop loss automatically moves to entry price + 1 tick. Any trade that reaches the breakeven trigger cannot close as a loss. Your worst case becomes breakeven.

Exit Type 7

SESS Session Close Exit

When "Avoid Last N Minutes Before Close" is enabled, the engine goes flat N minutes before session end. Prevents holding through close. Configurable per market type in settings.

NQ / YM Market Regime

Measured from the 9:30 AM RTH open — exactly what you see on TOS. Both NQ and YM must exceed their respective thresholds for a confirmed regime. Enable for Futures and Options. Leave OFF for Forex, Crypto, Stocks.

GREEN

Both ≥ +100 pts from open

✅ Prime Calls — Full Strength

MIX GREEN

Both positive · 0 to +99

⚠ Calls OK — Developing

GRIDLOCK

Spread ≤ 60 pts

○ No Entries — Too Tight

MIX RED

Both negative · 0 to -99

⚠ Puts OK — Developing

RED

Both ≤ -100 pts from open

✅ Prime Puts — Full Strength

MIXED

One positive · one negative

○ No Entries — Disagreement

Leadership: When NQ leads (abs NQ pts > abs YM pts + 100), NQ drives momentum and YM follows — faster moves. When YM leads, the move is slower and steadier. NQ joining a YM move picks up momentum significantly. The scorecard shows GREEN NQ or GREEN YM to indicate the leader.

VIX Opposition Logic

The VIX moves opposite to NQ approximately 96% of the time when a trend is forming. This means when everything is green for a call, the VIX row should read red — and that red is actually your confirmation, not a warning. This is counterintuitive but powerful.

Call Confirmation

VIX Row: TREND RED = Calls OK

When VIX MACD is bearish + VIX DMI bearish + VIX RSI below put threshold — VIX is in its own downtrend. VIX falling = NQ has fuel to rise. The RED on the VIX row is your green light for calls.

Red VIX = Call Confirmation ✓

Put Confirmation

VIX Row: TREND GREEN = Puts OK

When VIX MACD is bullish + VIX DMI bullish + VIX RSI above call threshold — VIX is in its own uptrend. VIX rising = NQ has fuel to fall. The GREEN on the VIX row is your green light for puts.

Green VIX = Put Confirmation ✓

Mixed / Neutral

VIX Row: WAIT = No Confirmation

VIX conditions are mixed or not yet aligned. The VIX is not giving a clear read in either direction. This does not block entries (VIX gating is OFF by default) but it means the opposition logic isn't confirming your trade.

No VIX confirmation — use other signals

VIXIN · NEW v5

VIXIN — Live VIX Candle Direction

A separate row that shows the VIX candle direction in real time on your current timeframe. Green square = VIX moving up this bar. Red square = VIX moving down. One glance gives you the VIX momentum without reading a separate chart.

🟩 Up = market pressure · 🟥 Down = market support

Timing Windows — 10-Minute Cycle

Every 10 minutes follows a rhythm. Anchor minutes are where the freshest signals appear. Exit zone minutes are where momentum most often exhausts. In v5, the exit zone is wired into the exit logic — it actually helps trigger exits, not just display a label.

ANCHOR

Minutes 0 · 1 · 8

Optimal entry windows within each 10-minute cycle. Signals at these minutes carry extra weight. The 0 and 1 minute marks are the most reliable for new entries. Minute 8 is valid but candles often come in flat — use with caution and additional confirmation.

0m 1m 8m Best entry timing

EXIT ZONE

Minutes 0 · 3 · 7

Optimal exit and trade management windows. The ADX most frequently breaks at minutes 3 and 7. In v5 — during these minutes, if a warning candle fires AND ADX is bending AND no volume surge, the exit triggers automatically.

0m 3m 7m Manage your trade here

Other Minutes

2m · 4m · 5m · 6m · 9m

Standard bar minutes — neither anchor nor exit zone. Signals can still fire here but they don't carry the timing weight of anchor minutes. The scorecard shows the current cycle minute in gray.

Note

Minute 0 Is Both

Minute 0 (start of each 10-min cycle) is simultaneously an Anchor (entry) AND an Exit Zone (management). The scorecard shows ANCHOR at minute 0 since entry is always the priority read. Exit zone logic still applies in the background.

Stop Loss · Take Profit · Trail System

v6 has a complete multi-layer protection system. Three mechanisms work together: the fixed Stop Loss protects against catastrophic moves, the Trailing Stop locks in profit, and the Breakeven Trigger ensures no profitable trade ends as a loss once the trigger is reached.

Protection Layer 1

Stop Loss

Fixed stop below (calls) or above (puts) your entry price. Protects against NQ wick noise and sudden reversals. Default: 25 points. Shown as a red dashed line on the chart. Configure in points, ticks, dollar value, % account, or % trade.

Protection Layer 2

Take Profit

Fixed profit target above (calls) or below (puts) your entry. When hit, trade closes with full profit. Default: 60 points. Shown as a green dashed line on chart. The trail system activates before TP to let winners run further if momentum holds.

Protection Layer 3

Trailing Stop

Once price moves Trail Trigger distance in your favor, the trail activates and follows price at Trail Distance behind the highest high (calls) or lowest low (puts). Trail Trigger: 5 pts. Trail Distance: 5 pts. Once trail activates, your worst case is breakeven.

Protection Layer 4 · NEW v5

🔒 Breakeven Protection

When price reaches the Breakeven Trigger distance in profit (default: 10 pts), the Stop Loss automatically moves to entry + 1 tick. Any trade that reaches the trigger cannot close as a full loss. The system guarantees breakeven once this fires.

Protection Layer 5 · NEW v5

◆ Chandelier Exit

Exits when price drops more than 2 ATRs from the highest high reached since entry (calls), or rises 2 ATRs from lowest low (puts). Catches pullbacks from profit before they become losses. The "gave back my gains" fix. Adjustable multiplier in settings.

Unit Options

Choose Your Units

All SL/TP/Trail values can be set in any of five units — switch in Settings → SL/TP/Trail Unit: Ticks (minimum moves), Points (price units, default), Value ($) (dollar risk), % Account (equity %), % Trade (% of entry price).

Fibonacci Levels

Auto-drawn from the most recent swing high and low. Key levels (38.2%, 50%, 61.8%) are thicker and brighter — these are where price most frequently reverses or finds support/resistance. When a FIRE signal fires near one of these levels, it's higher probability.

Key Level

38.2% — First Retracement

The first major pullback level after a move. In strong trends, this is often the shallowest retracement before continuation. A CALL signal near the 38.2% bull level in an uptrend is a high-conviction setup.

Key Level

50.0% — The Magnet

The most respected level — midpoint of the entire move. Price is naturally drawn to the 50% retracement. A signal here carries strong probability. Watch for confirmation candles at this level before acting.

Key Level

61.8% — The Golden Ratio

The classic Fibonacci level. Many institutional buyers/sellers operate here. The deepest common retracement before trend continuation. If price bounces here with a green/red candle and all conditions align — that is a prime entry.

Minor Levels

0% · 23.6% · 78.6% · 100%

Secondary levels shown as thinner dashed lines. Still worth noting but carry less weight than the three key levels. The 0% and 100% mark the boundaries of the measured move. Each level individually toggleable in Fibonacci Settings.

Anchor Method

Auto / Session / Manual

Auto (default) — engine finds recent swing high/low within lookback window. Session — resets at 9:30 AM each day from today's high/low. Manual — you input exact high and low price in settings. Select based on your trading style.

Direction

Trend / Both

Trend (default) — draws levels relevant to the current DMI direction. Bull trend = low-to-high retracements. Bear trend = high-to-low. Both — draws all levels always. More information but busier chart.