I normally do not use this indicator for signals. Instead I am using this to recognise the trend as a confirmation for my signals.
- Rising values confirms continuation of a trend. (Uptrend or downtrend)
- Falling values indicate a ranging market.
- High values: Potentially end of a trend.
- Low values: Maybe start of a trend.
A volatility indicator can help you in interpreting this indicator as in a more volatile market the range will be wider!
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