What is this indicator?
Shows the ratio of total recent gains to total recent losses on a scale between positive and negative 100. Unlike RSI, it has no exponential smoothing and is more sensitive to price changes.
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.