It draws a blue down arrow on the chart when a bar closes below the tight +-2% band (and the previous bar close was above).
It draws a blue UP arrow on the chart when a bar closes ABOVE the tight band (and the previous bar close was below).
The idea is to enter in the direction of the arrow on the next 2 bars. Usually the price retraces before taking off in the direction of the arrow so I'm looking for rules to patiently enter. The 3 centre lines look like good candidates for 3 entry levels.
If the market move is explosive like recently on the 14th then price doesn't retrace in the next 2 bars but you will see that right now the price has reentered the buy zone and the trend is (Wide bands turn green when sloping up). Is the market retracing now simply because the first move was too quick for people to catch this train? Comments welcome.