This "on chart" indicator is used purely as a visual sentiment to directional momentum of the pair you are looking at.
it is split into two parts, both of which i will explain below.
1, The SMA (purple and blue fading visual mas) this is used to find the directional momentum
2, the DMA (a slightly delayed Moving Average), is used to decide if the market is in a bullish or bearish move, hence determining whether or not to go long or short. -only go long when price above DMA, and short, below.
i have found it very good at calling out bad trades, when the direction changes quickly. same as all my other indicators this is fully adjustable in the settings.
i find, with the standard settings, it works best on the 2 hour timeframe as shown, but again, can be used on any time frame.