Absolute Strength: Comparing Smoothed Bull and Bear Pressure

Summary

The Absolute Strength indicator plots separate bull and bear series to summarize directional price pressure. It offers two calculation modes: one derives the series from positive and negative close-to-close changes, while the other measures the current close against the recent high-low range. Each series is averaged over a chosen length and then smoothed again; the display includes both histograms and lines.

The described defaults use a period of nine, one smoothing period, and a weighted moving average mode. These are configurable indicator settings, not evidence of a profitable strategy. The source provides no entry or exit rules, market-specific guidance, comparative testing, or performance results, so users would need to assess its behavior and validate any use in their own trading context.

Key ideas

• The indicator presents bull and bear pressure as separate plotted series.
• Its calculation can use price changes or position within a recent high-low range.
• Both series are averaged over a selected period and smoothed a second time.
• The display combines histograms and lines, with a weighted moving average as the default mode.
• The document supplies no trading rules or evidence of performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.