It first calculate the Moving Average Envelope over the K R I Period of the High if MODE is 1, and period of the Low if the MODE is set to 2.
In the second step, It calculate the K R I, which is ratio of difference between the current price and the Moving Average envelope, divided by the Moving Average envelope. This value is then expressed as percentage.
When the indicator value is above zero, it implies bullish trend, and traders can initiate LONG positions. When the indicator has peaked out above zero and is gradually falling, traders should exit their LONG positions.
When the indicator value is below zero, it implies bearish trend, and traders can initiate SHORT positions. When the indicator has bottomed out below zero and is gradually rising, traders should exit their SHORT positions.
It’s always advised to use any E A or Indicator on Demo account first and use it on live account after confirmation of the desired results of the E A or Indicator.