Confirming Trend Direction with Moving Average Slope and Candle Color
Summary
This indicator compares the direction of a moving average with a Slope Direction Line. When both point up, it colors bullish candles green and bearish candles light green; when both point down, it uses red for bearish candles and light red for bullish candles. It leaves candles uncolored when the two lines do not share a direction.
Users can configure the period, calculation method, and applied price for each line. The Slope Direction Line is calculated internally, so it does not need to be installed separately. The document describes the indicator’s display rules and inputs but gives no trading rules for entering or exiting positions, performance evidence, or risk controls. Candle coloring can help visualize aligned direction, but the description alone does not establish that the alignment predicts future returns.
Key ideas
- The indicator compares the directions of a moving average and a Slope Direction Line.
- Matching upward directions color candles green or light green according to candle polarity.
- Matching downward directions color candles red or light red according to candle polarity.
- Candles remain uncolored when the two lines point in different directions or otherwise fail to align.
- Each line has configurable period, method, and applied price inputs.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.