The calculation is based on the type of price data specified in the "Source" parameter and the length of the time interval specified in the "Length" parameter.
The indicator helps to visually find a local trend and rebound points.
Thanks for your attention!
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.