If the candle has closed above the ribbon - open long (and close short)
If the candle has closed below the ribbon - open short (and close long)
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.