The dynamics of the market consists in a sequential alternation of periods of rest and bursts of activity, so the approach to this indicator is simple:

• if the indicator value is too small, that is, the market is completely at rest, then it makes sense to expect an imminent surge in activity;

• on the contrary, if the indicator is extremely large, it means that this activity is likely to decline soon.

Usually this indicator is used as an integral part of other indicators.