It makes it easier to see what is happening with a quick glance. I have also added Fib levels as an experiment, but when doing some backtesting they seem to line up reasonably well with past price movements. They can be used to see possible reversal areas, or as thresholds to gauge how strong the trend is. Fibs play a big role in the markets for some reason and I have seen them applied to more than PA with good results, but I know it will not fit into every strategy. The more standard settings for the thresholds are 25,50,75 and you can change them to those if you want, but I suggest taking a look at the Fib version first.
The smoothing is set up for Crypto trading on Mid to High TFs. If you are trading sub 1hour charts I would suggest changing it to 3-4. If you are trading traditional markets it is probably a good idea to have it set somewhere between 6-14 (default is 14), but I am not a professional so please do your own testing and research.
going up = Green
going down = Red
DMI+ going up = Bright Aqua
DMI+ going down = Turquoise / Dark Aqua
DMI- going up = Bright Purple
DMI- going down = Dark Purple
(if someone finds a better colour system please let me know as it is tricky to get it looking good without being unicorn puke)
This is my first script and I am just beginning to learn PineScript so somethings may have been done in an unorthodox manner but I believe everything is working as it should, however, I am happy to make any improvements. I'm interested in what people think of the Fib levels on this indicator and would love to hear people opinions and results in the comments.