In the article “The CAM Indicator For Trends And Countertrends” in the January 2018 Traders’ Tips issue, author Barbara Star introduces using chart patterns based on a coordinated ADX and MACD or, as she abbreviates it, CAM. In the article, she describes using the CAM indicator to identify upward and downward trends as well as pullbacks in existing trends and countertrend rallies.

The author also suggests using other indicators such as an exponential moving average (EMA) and the commodity channel index (CCI) to help confirm signals generated by CAM.

• green candlesticks = uptrend
• gold candlesticks = pullback
• red candlesticks = downtrend
• blue candlesticks = counter trend

//PRC_CAM trend and countertrend | indicator
//19.03.2018
//Nicolas @ www.prorealcode.com
//Sharing ProRealTime knowledge

mMACD = macd[12,26,9]
aADX = adx[10]

if aADX>=aADX[1] and mMACD>mMACD[1] then
//CAM up
 r = 0
 g = 255
 b = 0
elsif aADX<=aADX[1] and mMACD<mMACD[1] then
//CAM PB
 r = 255
 g = 215
 b = 0
elsif aADX>=aADX[1] and mMACD<mMACD[1] then
//CAM DN
 r = 255
 g = 0
 b = 0
elsif aADX<=aADX[1] and mMACD>mMACD[1] then
//CAM CT
 r = 0
 g = 0
 b = 255
endif

DRAWCANDLE(open,high,low,close) coloured(r,g,b)

RETURN