Trend Cloud
The clouds reflect a possible overextension of the trend. Traders could use it as a signal to scale out the positions in the direction of the present trend or avoid scaling in.
The indicator plots the difference between ADX over the 45 level proportionate to the range between an ATR multiplier around MA. By default, the ADX is calculated with a DI length of 14 and an ADX smoothing of 14, an ATR length of 14, MA length of 20 and a multiplier of 2.
On the chart, I have highlighted with the vertical line the candles when the indicator was activated on all four timeframes simultaneously.
