This indicator basicly calculated by adding the highest high and the lowest low over the past 26 periods and dividing the result by two and also using 60 minutes period.
And indicator has 3 functions.
1. Resistance
2. Support
3. Buy and Sell Strategy
Better use this line for daily period.
If you use this line for daily trade you can see this is perfecly working as resistance and support.
How it works for buy and sell strategy?
When price breaks the line this means you can buy. And also you can sell when line breaks price.