The indicator provides a very important information that can be used to build support/resistance levels, define trend reversals, impulse movements, as well as in candle analysis. It may also detect activity of large market makers.
There is only one parameter (Period). The bigger its value, the more powerful and scarce are the signals. A few copies of the indicator with different parameters and the timeframe M30 or higher are recommended for analysis.
The indicator lines are interpreted as follows:
- The red line indicates the accuracy of the history analysis. It is recommended to set it above 0.95 or below -0.95.
- The blue line displays money flow direction.
- The green line shows spare movement capacity.
The table displays possible interpretation of the indicator values:
|1||Buy (support level)||X||X||X|
|2||Sell (resistance level)||X||X||X|
|3||Free bullish movement,
|4||Free bearish movement,
|5||"Trend boost"/approaching resistance level (deliberate movement)||X||X||X|
|6||"Trend boost"/approaching support level (deliberate movement)||X||X||X|
7. If the previous bar has featured a signal for BUY or SELL order execution, while the current red line value (accuracy) has significantly changed and the green one has remained at the same level, a buy/sell signal is amplified. This may be an attempt to provoke a strong movement or a great desire to break through the level.
The numbers on the screenshots indicate the market states corresponding to the table.