From Mladen Rakic:

This is a variation on the standard deviation

it is using momentum of price (instead price itself) for calculation
it is calculated in a way that it takes minimal CPU load
As far as values are concerned, it is similar to standard deviation. Same as standard deviation it can calculate deviation of anything
Comparison : upper is this one, lower is standard deviation
Recommendations:
You can use it as any standard deviation indicator

From Mladen Rakic:

As a quick example how momentum deviation (published here : Momentum deviation) can be used, this is a momentum deviation bands indicator (similar - but just similar - to Bollinger bands)




Recommendations:
You can use it in same way as Bollinger bands