LBR Paint Bars indicator draws color candles depending on a trend direction. The trend is defined by the location of two volatility lines. A color cloud histogram is displayed along these two lines.
It has four inputs:
- Factor - ATR share in the cloud width calculation
- ATR period - ATR calculation period
- HL period - cloud borders calculation period
- Color Candles - display color candles (Yes/No)
Calculation:
Edge1 = Min(Lowest(Low, HL period) + Delta; Edge2 = Max(Highest(High, HL period) - Delta;
where:
Delta = ATR(ATR period) * Factor
If color candles display is enabled (Color Candles = Yes):
- if the bullish candle is closed above the cloud, a green candle is displayed
- if the bearish candle is closed above the cloud, a light-green candle is displayed
- if the bearish candle is closed below the cloud, a red candle is displayed
- if the bullish candle is closed below the cloud, an orange candle is displayed
