The center of gravity indicator there as 5 lines:
- the middle line is called the center of gravity line
- then there are the green and red lines above as well as below the middle line.
So how it works is this:
- when price travels on the outer extremes, it must at some point and time down the line, head back to the center of gravity line.
- the outer extremes of prices are represented by the green and red lines on both sides.
- so if you see price heading UP the red lines and if price touches them, you should be looking to sell because price is expected to move down to the center of gravity middle line.
- if price is falling DOWN to the green lines and if it touches them, you should be looking to buy because you will expect price to move back up the center of gravity line.