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The page you’re on has a pretty good description underneath but it’s just one of a number of indicators that have backtested well to historical bull markets that technical traders use to determine when to sell. Don’t recommend looking at it by itself in isolation but a very good indicator nonetheless.
Pro
Not a fan of pi Indicator, but if you’re going to leverage on-chain analytics to make decisions I’d suggest combining a few different models/charts instead of just one. Ex. Puell, rhodl, etc