ADX Bar Colors for Trend Direction and Candle Agreement

Summary

This indicator colors price bars according to the trend direction calculated from the Average Directional Index (ADX). It uses a lighter shade when the candle’s direction agrees with the indicated trend and a darker shade when they oppose one another. The display is intended to make the relationship between trend and individual bars easier to see on a chart.

The description identifies the indicator’s author and says the original was written in MQL4 and published in 2007. It gives no parameter settings, trading rules, backtest, or evidence that the coloring predicts future returns. ADX-based trend direction is a charting aid here; the document does not explain how trend direction is determined from ADX or how the colors should guide entries, exits, or risk. Users would need to inspect the underlying implementation and validate any resulting trading rules independently.

Key ideas

• The indicator assigns bar colors according to an ADX-derived trend direction.
• A lighter bar marks agreement between candle direction and trend, while a darker bar marks opposition.
• The description provides no trading rules or evidence of predictive performance.
• The original MQL4 indicator was published in 2007.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.