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The indicator is calculated based on price changes in the history and is calculated mathematically, recalculated each time the data is received again. It can be used on different timeframes. From the borders of the indicator in 70% there is a change in the direction of price movement, or consolidation. In this way, you can trade both on the trend and in the middle of the channel from its borders. It is better to use it in trend trading to determine resistance/support levels. in the video, you can see how the indicator works:
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