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This indicator specifies the total value of the entry points for all positions opened on the market at the moment. Average weighted entry point takes into account all the currently open positions, both long and short ones, so it does not actually suggests going long or going short.
If the average weighted entry point is close to the currency rate, the trend is weak and a sideways movement is prevailing.
If there is a divergence between currency rate and the average weighted entry point, a new trend is nascent.
Critical discrepancies between the currency rate and the average weighted entry point testify to a strong trend on the market.
In case with an uptrend, the currency rate crossing the line of the average weighted entry point from top downwards means a reversal. As for a downtrend, proof of a reversal is the currency rate crossing the average weighted entry point from bottom upwards.