Point-Threshold Price Movement Bars with Reversal Shading

Summary

This indicator colors price bars according to movement direction measured against a user-specified point threshold. When price moves against the current direction, the bar color becomes progressively less saturated at three rollback levels: one quarter, one half, and three quarters of the threshold. A rollback equal to the full threshold marks a change in direction, and the indicator switches to the opposite direction’s main color.

The description explains the visual rule and its reversal threshold, but provides no performance evidence, trading entry or exit rules, or guidance on selecting the point value. It also does not specify the instrument, timeframe, or how gaps and intrabar price movement are handled. The display can help visualize directional movement and pullbacks, but by itself does not establish whether a move is tradable or predict future prices.

Key ideas

• The indicator assigns bar colors based on price direction measured against a configurable point threshold.
• Counter-direction movement reduces the color saturation in three stages tied to fractions of that threshold.
• A rollback equal to the threshold changes the indicated direction.
• The description provides no performance tests or rules for choosing a threshold.

Tags

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