This indicator is part of a strategy that is not widespread, but very efficient and simple to use. Basically, trading signals can be obtained from observing the price in relation to the channel. As soon as the candlestick closes above the channel, you can buy at its maximum, and, conversely, when the candlestick closes below the channel, you can enter into sales operations starting at its minimum.
Note: In Brazil, more specifically in the futures market, the indicative lines can also function as support or resistance due to the Smart Money pranks. With a little attention, it can yield good profits.