Volatility Cycle measures the strength or weakness of the trend, not the direction of the trend. When the indicator value goes below 2 or 1.5 factors, price is considered to be in compression. Conversely, if the indicator value goes above 5 or 6 factors, then price is considered to be in expansion mode.
The default settings have been carefully selected to work optimally. Explore all the features available in TickSurfers Volatility Cycle by going to the indicator's input settings and selecting the modes and settings your prefer.