Three designated colors correspond with price action movement:
Red - the price action is heading to the downside.
Green - the price action is heading to the upside.
Yellow - the price action is consolidating and you shouldn't be interested in a trade at that time.
Think of it as a traffic light.
When the light is GREEN you're on the Bull Train and it's going up so you BUY!
But if it's RED you're on the Bear Train and you are STOPPING (Selling).
And finally, if it is YELLOW you do neither because it's ALERTING you to stay away from entering the market because it is neither bullish nor bearish.
When you attach the Big Three Indicator to your chart, you'll know within seconds that it works.