This website or its third-party tools use cookies which are necessary to its functioning and required to improve your experience. By clicking the consent button, you agree to allow the site to use, collect and/or store cookies.
Please click the consent button to view this website.
I accept
Deny cookies Go Back
  • Price Action Trading Course
  • Trading Setups
  • Topics ↓
    • Price Action Trading
    • Day Trading
    • Trader Development
    • Site Map
  • TSR Trading Guides
  • Resources
    • Udemy Trading Course
    • Trading Books
    • Trading Indicators
    • Forex Tester 4
    • NinjaTrader & Kinetick
  • Member Login

Trading Setups Review

Trading Strategies, Guides, and Articles for Active Technical Traders

You are here: Home / Chart Background Color Indicator

Chart Background Color Indicator

Indicators are helpful, even for price action traders. But you should follow two principles to make the most out of indicators.

1st Principle – Focus on price action.

Indicators should take a secondary, supportive role.

2nd Principle – Pay attention to the direction of the indicator.

Many traders look out for specific values of an indicator. An example is looking for oversold values using the Stochastics indicator (<25).

However, the trend of the indicator values holds valuable information too. The ADX is one example.

In fact, some indicators like the OBV are meaningless unless you study its trend.

To apply these two principles with ease, use the Chart Background Color Indicator.


The Chart Background Color Indicator is part of the TSR Indicator Pack.

Pay what you want (minimum $9.99) for the TSR Indicator Pack (worth $95).



The Chart Background Color Indicator

This indicator colors the background of a price chart to show if the indicator value has increased or decreased, compared to the previous price bar.

With a colored background to highlight the changes in indicator values, you can maintain price action at the forefront of your analysis.

Setting Up The Indicator

Not sure how to import the indicator? Refer to this article for instructions.

IMPORTANT

1. Under the indicator settings, click on “Data” > “Input series” > “…”

2. Choose your desired indicator from the dialog box. E.g ADX

Other Parameters

1. DownColor – Background color for increasing values.

2. DownColorIntensity – Intensity of colored background increasing values.

3. UpColor – Color for volume decreasing values.

4. DownColorIntensity – Intensity of colored background increasing values.


Examples of Chart Background Color In Use

#1: Using the ADX indicator to track if the market is trending or ranging

Traders often overlook the slope of the ADX indicator which gives an early signal of the market’s trending tendencies.

For more details and examples of using the ADX slope in your trading, read this article.

ADX Background Color Settings

ADX Slope Example

#2: Using a moving average to track market bias

If you like strategies that use moving averages, you will find this chart setup useful.

WMA Background Color Settings

With this, you can enjoy the benefit of a clean price chart while keeping track of the long-term trend using the WMA.

WMA Colored Background

#3: Observe Price Action With Volume Changes

As a price action trader, you want to focus on price movement. But you might also appreciate the power of volume changes.

With this indicator, you can observe the impact of decreasing or increasing volume. Just choose “VOL” as your input series.

Volume Background Color Settings

One of the most useful signals arises when you see volume falling (or rising) continuously over three or more price bars. A sustained increase or decrease in volume always deserves a closer look.

Volume Colored Background

For more examples of tracking volume with this indicator, refer to these articles:

  • Low Volume Pullback
  • Low Volume Pullback Expanded

Endless Possibilities

This indicator is a versatile tool. For its input series, you can select:

  • Any indicator
  • Price component (Open, high, low, close, typical)
  • Volume

Experiment with it. Observing the trend of indicators and price/volume data is an excellent way to uncover new relationships you can exploit in your trading.


The Chart Background Color Indicator is part of the TSR Indicator Pack.

Pay what you want (minimum $9.99) for the TSR Indicator Pack (worth $95).




Search Trading Setups Review

Get a Free Course Chapter from Galen Woods' Day Trading With Price Action Course [PDF]

Plus, our latest trading guides and tips in right your inbox.

Recommended For You

What To Do When Your Day Trading Broker Fails?

How to Manage Gap Risk in Swing Trading

Best Futures For Day Trading

10 Technical Trading Indicators You Must Know

A Candlesticks Trading Strategy With Mountains, Rivers, Crows and Soldiers

John Hill’s Trend Line Theory – Using Trend Lines for Trading Pullbacks

Trading the Bollinger Band Squeeze

Trading Course Banner

Trading Setups Review

  • About Us
  • Contact Us
  • Advertise With Us
  • Privacy Policy
  • Affiliate Disclaimer
  • Full Risk Disclosure

Learn More

  • Day Trading With Price Action Course
  • TSR Trading Guides
  • Trading Setups
  • Trading Articles
  • Trading Books
  • Site Map

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.


The website contents are only for educational purposes. All trades are random examples selected to present the trading setups and are not real trades. All trademarks belong to their respective owners. We are not registered with any regulating body that allows us to give financial and investment advice.


Trading Setups Review © 2012–2021