Basicly it's a with 3/10/16 settings but without the histogram (difference between fast and slow line), instead the shown histogram is based on the fastline (green bars = fastline above zero). The color of the lines will tell you if the line is falling (red) or rising (green).
In terms of setups dont just buy or sell if a line is changing its color. Look for divergences or setups like first cross or anti.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
study("LBR Oscillator", shorttitle="LBR_OSC") fast = input(title="Fast Length", type=integer, defval=3) slow = input(title="Slow Length", type=integer, defval=10) smoothing = input(title="Signal Smoothing", type=integer, defval=16) [fastline, slowline, histline] = macd(close,fast,slow,smoothing) plot(0, color=gray) plot(fastline, color=fastline > 0 ? green : red, style=histogram) plot(fastline, color=fastline > fastline ? green :red) plot(slowline, color=slowline > slowline ? green : red)