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Sage Indicator is a momentum and trend indicator that can also forecast impending volatility. The indicator is a proprietary combination of normalized price, volume and moving averages data. 

The indicator is in the form of a two-tone colored ribbon that oscillates on a background of six Fibonacci levels between -0.23 and 0.78. The colored indicator ribbon is bounded by 'High' and 'Low' borders and a color fill in between. Green fill indicates strength and red fill indicates weakness.

The six Fibonacci levels are -0.23, 0, 0.38, 0.5, 0.61, and 0.78. 

The ‘High’ and ‘Low’ ribbon borders are simply the maximum and minimum values of the indicator in the measurement period, which is determined by the ‘Length’ input. The following two are useful studies obtained from the ‘High' and ‘Low’ lines:

1. When the ‘High’ and ‘Low’ lines are ‘compressed’ i.e. the ribbon is compressed and narrow, they usually indicate impending volatility. The direction of the impending volatility can also be predicted with some accuracy by studying patterns of previous compression behavior for the underlying asset.

2. The ‘High’ and ‘Low’ lines can also behave as resistance and support, when they flatten out, it may indicate a local top or bottom or consolidation.

The Sage ribbon is the indicator, green fill for strength and red for weakness. Other than simple trend observation, the following two should be given special consideration:

1. Sage ribbon breaking below zero, is bearish and continues to indicate bearishness in the underlying asset until the ribbon clears above zero.

2. When the ribbon transitions between Fib zones the moves in the underlying can be expansive.

The six background (-0.23, 0, 0.38, 0.5, 0.61, 0.78) Fibonacci levels serve several purposes:

1. Below zero is considered bearish and vice-versa.

2. The levels can act as support and resistance and when the ‘Sage’ line transitions between these levels, the underlying moves can be expansive.

3. Also the extreme Fib levels -0.23 and 0.78 can be considered as oversold and overbought conditions.

When one of the 'High' or 'Low' lines approaches the other, a reversal compression pattern forms. The approaching line will ‘reverse’ and forecast the direction of the underlying move.

E.g. see below both top and bottom reversal patterns on $MARA stock.