Trying to figure out the color coding on looted items...?

[Abe]

I tried to search for a post related to this, but couldn't find one. Maybe I used the wrong parameters.

I understand how to evaluate items myself to see if I want to keep them or trash them. I'm guessing the colors of the name of the item correspond to rarity.

Is this correct?

[Cuemif Sampset]

Here is the update that explains it

viewtopic.php?f=13&t=2049

[Abe]

Thank you!