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Elder-Style Bar Colors for the MDAC Indicator

Article MQL5 code base
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Summary

This document describes an MDAC indicator that colors chart bars to communicate trend state. Green denotes an uptrend, red denotes a downtrend, and blue bars appearing after either of those colors indicate a possible trend change. The color scheme offers a visual way to follow the indicator’s directional interpretation on a chart.

The description says the indicator relies on classes from a separate smoothing library that must be installed in the trading terminal. It notes that an earlier MQL4 version was published in 2008, but gives no formula for MDAC, rules for confirming a trend change, or examples of signals. It also provides no backtest or evidence about profitability, lag, or behavior across markets and timeframes. The color transitions therefore explain how to read the display, but do not establish a complete trading strategy or explain how to manage risk when acting on it.

Key ideas

  • The indicator colors bars green for an uptrend and red for a downtrend.
  • Blue bars after green or red bars represent a trend change.
  • The indicator requires a separate smoothing library in the terminal.
  • The description does not specify the MDAC calculation or trading rules.
  • No performance evidence or risk controls are provided.

Tags

Technical indicatorsTrend following

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