The index needs to be viewed in context with the rest of the information in the chapter concerning "level one, the novice" from his book Trading Chaos.
In order to use this indicator you must first understand that market movement is manipulated by a small group of insiders with deep pockets. I.E. THE SMART MONEY!! This indicator tells you exactly where the insiders are trading and which side of the market they are taking.
You must also understand that these market operators fade the retail traders. When you understand these two things, that the market is manipulated by a small group with deep pockets who trade against the flow of retail trades you will be into the real world trading. I you do not know this fact, the matrix has you and your chance of long term success is slim indeed.
More information can be found on this site, http://www.forextradingmajic.com
Really awesome indicator and just bravo to the clear and exhaustive explanation...blessings.
go - green = herd / prey
blue - fake = money maker / predator
fade - brown = no interest in the market / follow the direction
squat - pink = bulls vs bear is even / be ready for a market movement
always use support / resistance or supply and demand zone... remember the prey is always hunted by the predator... hope this helps!!!