What is this indicator?
A type of channel plotted at a fixed percentage above and below price to reveal extreme moves relative to the average. It's a simple, easy-to-understand tool for assets with relatively stable volatility.
How to read the chart
When the indicator's main line takes on a clear direction, it usually confirms the market's dominant trend in that same direction; crossovers and changes in slope are the main points of focus.
Practical tip
It's best to use this indicator alongside a momentum indicator so that both trend direction and trend strength can be measured.