The indicator is a fundamental indicator for momentum. Indeed, it's about as fundamental in terms of momentum as it's possible to get as it's literally examining the in price.
The Smoothed Indicator (originally introduced by G Schutzman in 1991) is *not* just an plot with smoothing, but instead it's calculated on an of the price instead of the price directly. Thus it is very useful to view trend changes, especially as this indicator crosses the zero line after some time above/below it.
The indicator will show overbought and oversold conditions (optional in settings). As is *not* a bound oscillator, the overbought and oversold levels change dependent on historical variation in min/max levels. This is why you will notice the shaded area in the center, it's upper and lower boundaries denoting OB/OS levels, change over time. You can, of course, change the OB/OS percentage.
The Smoothed indicator will show possible and opportunities as the indicator crosses the center and based upon other metrics such as overall trend (calculated internally - not shown). This, of course, can also be turned off.
Thoughts, feedback, and comments, as always, are welcome.
Tips, voluntary payments, and donations are always welcome! They help to fund continuing refinements and writing of new indicators.