This indicator with a sufficient accuracy allows defining 6 market states, exactly:
- Bull market (Bull Market).
- Bear market (Bear Market).
- Correction (Correction) in a bull market.
- Correction in a bear market (Bear Market Rally).
- Choppy market (Choppy Market).
- Flat market (Sideways Market).
As in AbsoluteStrength to define the market forces 3 methods of calculation are used: RSI, Stochastic and DMI. Using Length, PreSmooth, Smooth, Signal and MA_Mode parameters you can achieve the desired accuracy of calculation. Keep in mind that a period of a signal line (Signal) starts from 1, in this case Bulls and Bears values on the previous bar are used.
The indicator also applies a set algorithm for calculation used on high timeframes. It allows putting several indicators in one subwindow for different timeframes as it has been displayed in the image.
If parameter AlertMode=1, then a monitor will display messages informing about changing market conditions.