TrendPaint Colors Candles by Fast and Slow Moving Average Direction
Summary
TrendPaint colors candles to show both the direction of the market trend and whether the current candle rose or fell. In an increasing market, rising candles are light green and falling candles are green; in a falling market, falling candles are red and rising candles are purple. The method classifies direction using the relative positions of fast and slow rounded moving averages across four bars.
The document describes the indicator’s coloring logic and notes that it was first implemented in MQL4 before publication in 2010. It provides no performance results, trading rules, or evidence that the colors predict future price movements. The indicator is a visual trend classification aid, so users would need to define and test any entry, exit, and risk rules separately. Its implementation also depends on an external smoothing library in the stated platform environment.
Key ideas
- TrendPaint colors candles according to both market direction and each candle’s direction.
- It uses the relative positions of fast and slow rounded moving averages across four bars.
- In an uptrend, rising and falling candles receive different shades of green.
- In a downtrend, falling candles are red and rising candles are purple.
- The document provides no backtest or evidence of predictive performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.