It is a graphical indicator used to identify trends and pullbacks. Through it, it is possible to eliminate the noises and clearly see the smoothed pattern.
How should I use it ? This is just a example to be used with this indicator. Let's assume that we are looking for sell opportunities.
step 1: identify some (at least 3) positives (green) candles with a good volume, excluding consolidation regions.
step 2: wait for negative (red) candles with a good volume and also all previous candles must be by majority green.
step 3: wait for pullback with high volume or consolidation region to close the position.
FX:AUDUSD The example can be better described in the image below:
FX:EURUSD Another example os use, displayed in the image below:
FX:EURJPY Look how makes it easy to identify tops and bottoms.