What is this indicator?
Measures the momentary strength of buyers and sellers by measuring the distance of a candle's high and low from an EMA. This indicator is also the basis for calculating the Elder Ray Index.
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.