The Dots indicator is based on an indicator developed by TrendLaboratory in 2006. The indicator shows current trend direction by placing colored dots on the main chart. Blue dots indicate an uptrend, red dots indicate a downtrend.
Although the indicator calculation is not based on standard MetaTrader platform indicators, it uses the iMA (Moving Average) function to get prices of a specified type (Open, Close, Maximum, Minimum, Typical etc.). The calculation is based on cosine of a price change angle. The user can set several input parameters.