This indicator is part of a very popular strategy for its simplicity, but very efficient technique. Basically, the trading signals can be obtained by observing the closing of the candles in relation to the Supertrend line. When the candle closes above the Supertrend line causing it to change color, you can buy at the maximum of this candle. Inversely, when the candle closes below the Supertrend line causing it to change color, you can sell at the minimum of this candle.
Note: In Brazil, more specifically in the futures market, the indicative lines can also function as support or resistance due to the pranks of Smart Money. With a little attention, it can yield good profits.