Trading Bar-Color Changes with the Directed Movement Candle Indicator

Summary

This trading system uses changes in the color of a Directed Movement Candle indicator to trigger trades. A signal occurs when a bar closes and the indicator changes from blue to pink or from pink to blue. The document describes an Expert Advisor setup that requires two compiled indicator files and notes that a supporting library can accommodate nonzero spreads and stop-loss or take-profit settings.

The cited test uses default Expert Advisor inputs on GBP/USD four-hour bars in 2015, with stop loss and take profit disabled. The document refers to a deal-history figure and a results chart, but supplies no numerical performance measures or discussion of drawdowns, costs, or robustness. The color-switch rule is therefore a strategy outline, not evidence that the approach is profitable. Results from the stated test conditions may not generalize to other periods, instruments, or execution settings.

Key ideas

• Trades are triggered at bar close when the indicator changes between blue and pink.

Tags

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