Hi all .. just a quick one to pass on a custom indicator that I just did in the last 10 minutes. It took 10 minutes because it is the easiest concept, and just a more visual way for me to interpret the main indicator I use on my charts. I have named it Akuma99 Temperature to keep with the Stormy theme, and all it does is take the main line off the ADX indicator, look to see if it is above or below a certain level and colour the candlesticks background in an appropriate colour.

Here is a screenshot (click to enlarge):


That's the current EUR/USD chart, with the traditional ADX indicator at the bottom with a setting of 11 which I use. You can see whenever the black line moves above the level I have set, in this case 25, the candle background is shaded green, i.e. giving you the green light to employ trending trading methods, when it is below, they are red, telling you to stop trending methodology and look at some range trading methods.

Like all indicators, lag is always an issue, however this is not intended to give entry, or exit signals, rather just to give you a hint on which trading method you should be employing (you do have a method for ranging and trading conditions right?).

You can download it here from beginnertrader.com, enjoy. Just a note be sure to have your chart properties set to show chart in the foreground.

This entry was posted on Tuesday, March 07, 2006 at 11:22:00 AM. You can skip to the end and leave a response.