The indicator generates 4 main signal to increase.
– If after narrowing the indicator channel is expanded and the price went up, you can trade to increase.
– If the chart has reached the lower limit of the channel and crossed it, and then turned up and began to grow, you can open an up trade.
It is recommended to trade this signal during periods of high volatility, when there is no strong trend in the market. If there is a clear and long trend on the chart, the breakout may be false and the price will not reverse.
– If the chart has crossed the Central SMA from the bottom up, you can open a up trade.
– Another up signal is a W-shaped figure “double bottom”.
The chart reaches the lower limit, crosses it and pushes up. The first line W. Then the chart grows to the Central SMA, crosses it and turns down. The second line W.
Then the chart reaches the lower limit, but does not cross it, and turns up. The third line W. After that, the chart grows and forms the last W line. When the price crosses the level, which is approximately at the height of the Central point W, you can trade to increase.