INERCIA Bars: Coloring Candles by Price-Change Threshold

Summary

INERCIA_bars is a chart indicator that colors each price bar according to the size and direction of its price change relative to a user-supplied threshold, measured in points. Bars are blue when the rise exceeds the threshold, red when the fall exceeds it, and gray in other cases.

The document identifies the indicator’s author and says it was first implemented in MQL4 and published in 2008. It explains the visual rule but provides no trading signals, performance evidence, or guidance on selecting the threshold. Bar colors therefore describe price movement under the chosen setting; the text does not establish that the indicator predicts future returns.

Key ideas

• The indicator compares each bar’s price change with a point-based threshold.
• A sufficiently large rise colors the bar blue, while a sufficiently large fall colors it red.
• Changes that do not cross either threshold are shown in gray.
• The document gives no evidence that the color rule predicts profitable trades.

Tags

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