This indicator can be considered as an alternative to the well known RSI, Stochastic and DMI, as far as their methods of calculation based on Buyers and Sellers strengths. Despite of the enumerated indicators, the calculation is performed in points, not in a percentage. It gives a possibility to appreciate finer-grained market strengths and avoid such sufficient disadvantages as slippage in the strong trend for Stochastic.
In the given version of the indicator there is a possibility to build levels of Strength (Strength Level) and Weakness (Weakness Level) using three ways:
The illustration shows 3 variants of building the Strength and Weakness Levels. In the first subwindow are OverBought/OverSold levels, in the second is the channel of standard deviations and in the third is High/Low Channel.
The indicator has two additional smoothing using four type of the Moving Averages (MA_Mode: SMA, EMA, Wilder and LWMA):
To define the bend points of Bulls and Bears lines are used signal lines which are regulated by Signal and MA_Mode parameters. The indicator also uses a built-in algorithm of drawing lines for higher timeframes.
Translated from Russian by MetaQuotes Software Corp.
Original code: https://www.mql5.com/ru/code/1500