The indicator is using 3 instances of the new fast ema Hull (originally published here : Fast ema Hull average ). That indicator is an extremely fast and smooth moving average. Combining 3 instances of Fast ema Hull averages to 3 prices (Close, High and Low) can help in giving us a sort of an over-all look at the current trend assessment.
Probably the best way to use is to wait for the 3 instances to have the same slope color and then to use that slope as an indicator of a current trend, but the channel can be used too (for ranging periods when the channel can be used as a sort of a no trade zone). In any case, some experimenting with the Hull period is advised for different symbols and different styles of trading.
This calculates Optimal f using the Geometric Mean. Per Ralph Vince, "In trading we can count on our wins being for varying amounts and our losses being for varying amounts. Therefore the Kelly formulas could not give us the correct optimal f." So, using his equation(s), I created this library for the Geometric Mean version of Optimal f.Super smoother