What is this indicator?
Measures trend strength by comparing where price closes relative to its open-to-close range within the candle. It's built on the assumption that in an uptrend, prices usually close higher than they open.
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.