1. The arrow appears and shows the direction of the trend for the nearest time interval, and also shows the breakdown of the price after which the next candle closes in the opposite direction (here and in the step two lower indicators go to work thereby helping to filter the signal) see in the photo.
2. The indicator is painted on three zones which in turn are the levels of PS, respectively, in which zone the signal line with the points is moving can be understood as the trend. The price swings most often occur when the signal line leaves the border of the colored area.
3. The indicator helps to filter the signal and shows the strength of the price breakdown, for example, if the line with red dots is in the gray area and the line with green dots went far abroad, then the huge probability that the next candle will be the opposite of the previous one.
P.S It is important to understand! What works great in one hand, can be completely useless in others! Therefore, practice, patience and experience solve everything.