What is this indicator?
A long-term indicator originally designed to identify bottoms in stock markets and other large markets. Its crossing from below zero to above is traditionally treated as a signal of the start of a long-term uptrend.
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.