It will tell if the market is in or mode.
That can be an extra layer of analysis to make your decision.
You will see it will swap from red, dark red to green or dark green. The more bright the color is, the more you will see the tendency is strong.
PS: Take in consideration this indicator doesn't follow the price shown by tradingview. So it's not useful at all to decide to go LONG or SHORT based on what this indicator shows and what tradingview price ( ) shows. It's more a market direction indicator...