LBR Paint Bars: ATR-Based Trend Cloud and Candle Colors

Summary

The LBR Paint Bars indicator colors candles according to their position relative to a volatility cloud. The cloud boundaries are built from rolling highs and lows over a chosen lookback period, adjusted inward or outward by a distance based on the average true range (ATR) multiplied by a factor. Users can set the ATR period, the high-low lookback, the factor, and whether candle coloring is displayed.

The color scheme distinguishes bullish and bearish candles that close above or below the cloud, giving a visual cue about price location and candle direction. The document explains indicator construction and display behavior, but it provides no trading rules, sample chart, backtest, or evidence that the colors predict future returns. The cloud’s appearance depends on its parameter choices, and the indicator alone does not define entries, exits, or risk management.

Key ideas

• The cloud uses rolling high and low levels adjusted by an ATR-scaled distance.
• The ATR period, high-low period, and scaling factor determine the cloud calculation.
• Candle colors combine candle direction with the close’s position relative to the cloud.
• The indicator describes price location but supplies no tested entry or exit method.

Tags

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