The indicator is based on the moving average, but it does not use any standard MT4/MT5 moving average (MA) indicators. It uses an own formula to calculate the MA with a complex noise filter to create more accurate signals. The indicator shows you a dotted line in the main chart window exactly over the market price curve. The changing colors of the dots shows you trend changes and it shows you signals on the chart (yellow dots by default higher/below price), and also can create sound alerts on trend changes; you have the option to turn them on and off.
If the dots are pink, the market price is in downtrend and if the dots are blue, the market price is in uptrend. You should BUY if pink changes to blue and you should SELL if blue changes to pink. These moments are marked by yellow dots. When the yellow dot is above the market price, this is a signal for you to SELL. When the yellow dot is below the market price, this is a signal for you to BUY. Yous should use a moderate Stop Loss to protect yourself from false signals.
You can download the indicator here: https://www.mql5.com/en/code/16492