What is this indicator?
A percentage version of MACD that shows the gap between two moving averages as a percentage of the long-term average. This percentage format makes it easier to compare across assets with very different price levels.
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.