This indicator is based on an algorithm which provides accurate momentum tracking on every timeframe. It is visualized as a colored histogram and through some other tools. The value is calculated from an exponentially weighted moving average that is used to get a high and a low deviation, merging the last value into a range.
It includes
Overbought and oversold fixed areas. Their purpose is to facilitate the recognition of areas where the trend is likely to end or cool down. They are also marked with a background coloring. Zero line. It typically represents a change of trend when the price crosses under or over it. Volume shifts. Colored arrows will appear whenever a volume change is detected.
How to use?
Buy/Long on a blue confirmation arrow Sell/Short on a red confirmation arrow Take profit when the indicator starts showing a blue background Take profit when the indicator starts showing a red background
extra tip: the zero line often acts as support / resistance similarly to the overbought and oversold areas