The Dots indicator is based on another indicator which was developed in 2006. The indicator shows a current trend direction by placing colored dots on the main chart. Blue dots shows you an uptrend and red dots a downtrend.
Although the indicator calculation is not based on standard MT platform indicators it uses the iMA (Moving Average) function for getting prices of a specified type (Open, Close, Maximum, Minimum, Typical etc.). The calculation is based on cosine of a price change angle. You can modify several input parameters.
Advice: A recommended strategy is that you wait for 2 identical dots and open positions by trend. Unfortunately sometimes it fails. A suitable option would be to use one dot as a signal with Filter parameter set as Spread x 3.
You can download the indicator here: https://www.mql5.com/en/code/13180