What is this indicator?
Displays the difference between the 5- and 34-candle moving averages of the candle's midpoint as a histogram. The famous “saucer” pattern is defined directly on this indicator.
How to read the chart
The indicator moving toward the ends of its range usually signals overbought or oversold conditions; a divergence between price and the indicator is also considered an important signal.
Practical tip
Instead of trading purely off reaching an overbought or oversold zone, first check the overall trend on a higher timeframe and only take signals that align with it.