The Swami Market Mode study is a technical indicator designed for Thermo Mode; it is used for trend detection and analysis. Like in all Thermo Mode specific studies, shorter lookback periods reflect recent changes, middle range periods are used for confirmation, and the longest ones signify possibility of continuation.
Swami Market Mode calculation is based on comparing the trend slope on a time period to the peak-to-peak amplitude on the same period. Ratios higher than +1 are indicative of uptrend, ratios lower than -1 suggest downtrend, while values in between signify that the swing mode is on. In default color scheme, uptrend is indicated by green areas, downtrend by red areas, and swing mode by yellow.
||The price used in calculations.|
||The number of bars used in calculations.|
||Coefficient used in bandpass filter calculation to isolate the wave.|
||Coefficient affecting contrast of display. Smaller values mean sharper contrast.|
||The Swami Market Mode plot used in Thermo Mode.|
1. "Setting Strategies With Swami Charts" by John F. Ehlers and Ric Way. Technical Analysis of Stocks & Commodities, April 2012.
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.