This oscillator comprehends two different indicators: - The first one is a MACD but calculated using the Hull Moving Average. - The second one is to show the direction in which the Hull Moving Average is going.
Notice that in the first indicator, the histogram is colored as follows: - If the volume pressure (difference between the volume-weighted moving average and the normal one) is positive both for the short term and the long term, it's green, if negative it's red, and if not is simply gray.
This tool can be used both for: - Analyze the direction to have a bias to follow - Analyze the divergences - Obtain the signal to enter and exit the trade - Analyze the market strength with volume to confirm the signal