I’ve set out in slides how the indicator works. I do not want any one to think it is a black box.
The above link will allow you to download the how the indicator works in detail.
The image below shows the major difference between what professional and private investors do differently. Professionals lock in profits by moving up stop losses, they re-enter after exiting at a small loss if the trade does not initially go in their direction, they add to their winning positions, they limit their maximum loss to 1-2% of their portfolio risk capital and they use a professional system.
The image below shows the purpose for having an indicator – it automates much of thinking you otherwise have to do.