The indicator calculates the saturation levels of the price chart. A signal to exit the resale area is a buy signal. A signal to exit the overbought area is a sell signal. Usually, you need to set relative values for the overbought and oversold levels of Bottom and Top - for this indicator.
Most often, a good trend is visible on the price chart visually. But an experienced trader must clearly understand the current balance of power in the market before entering. And the indicator will help the trader make decisions by helping him with appropriate signals.