The L&S ASI is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions. It is displayed as an oscillator, which oscillates between two stripes: a green and a red one.
The green stripe represents the overbought territory and the red stripe the oversold territory. When the ASI is in or below the red stripe, it indicates that the security is becoming oversold and may be primed for a reversal. The same reasoning applies when the ASI is in or above the green stripe.
The ASI line is green when it increases and red when it decreases.