What is this indicator?
Measures the simple difference between the current price and the price N candles ago to reveal the raw speed of price movement. Crossing the zero line is usually read as a shift in momentum direction.
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.