The indicator identifies the direction and strength of the trend.
Bearish trend areas are marked with red color, bullish areas are marked with blue color. A thin blue line indicates that a bearish trend is about to end, and it is necessary to prepare for a bullish one.
The strongest signals are at the points when the filled areas start expanding.
The indicator has only two parameters:
- period - period;
- offset - offset.
The greater the period, the more accurate the trend identification, but with a larger delay. The optimal value is 8-14. Setting a high offset value is also not recommended, the optimal value is 5.
The red histogram shows a bearish trend
blue histogram - bullish trend